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Gulf Press > Gulf News > UAE Firm Establishing $500 Million Fund for Investment in Digital Sector Projects
Gulf News

UAE Firm Establishing $500 Million Fund for Investment in Digital Sector Projects

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Last updated: 2024/08/28 at 4:25 AM
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Hodler Investments, a UAE-based firm, recently announced the launch of a $500 million Digital Energy Infrastructure (DEI) Fund aimed at the Middle East, Africa, and North American markets. The fund will focus on investing in utility-like income-generating assets and distributed energy infrastructure for compute applications that incorporate innovative carbon capture, storage, and utilization methods. Mohamed El Masri, the managing director of Hodler Investments, mentioned that they have secured soft commitments of up to $100 million, which are non-binding and subject to final regulatory approval of the Fund.

The DEI fund is expected to range between $250 million and $500 million, including in-kind commitments that do not exceed the total capital commitments. The fund’s investment mandate covers various aspects of the digital energy value chain, including clean energy, power generation, data mining for blockchain, artificial intelligence, cloud computing, and other compute cluster applications. The focus is on achieving zero-emissions across the majority of the Fund’s portfolio. Additionally, the fund will invest in early-to-growth stage modern software technology companies that support the development and growth of fintech, web3, blockchain, and AI.

Hodler Investments aims to unlock natural wealth for all stakeholders, including communities, with the DEI Fund. The fund will capitalize on an existing pipeline of deals and projects that have been vetted by a team of qualified professionals. Utilizing technologies such as blockchain, AI, digital asset mining, and other solutions, the Fund is expected to strengthen the feasibility of sustainable energy infrastructure to meet the growing computing power demands while contributing to power grid stability globally. Hodler Investments has appointed DIFC-based asset manager, Ento Capital Management, to advise on structuring, establishing, and managing the fund.

By investing in digital energy infrastructure, Hodler Investments is contributing to the development of sustainable energy solutions that address the increasing demand for computing power while promoting power grid stability globally. The Fund’s focus on innovative technologies like blockchain, AI, and digital asset mining demonstrates a commitment to driving forward the adoption of clean energy solutions. Additionally, the fund’s investment mandate spans across various sectors including clean energy, power generation, data mining for blockchain, AI, cloud computing, and other compute cluster applications, with an emphasis on achieving zero-emissions across its portfolio.

Overall, the launch of the DEI Fund by Hodler Investments represents a significant step towards harnessing digital energy infrastructure to meet the evolving energy needs of the region and beyond. The fund’s focus on sustainable energy solutions, coupled with innovative technologies, positions it as a key player in driving the transition towards clean and efficient energy systems. As the Fund secures further commitments and moves towards its investment mandate, it is poised to make a positive impact on the digital energy landscape and contribute to a more sustainable future.

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News Room August 28, 2024
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