Lunate, a global investment firm, has made a significant move in the energy sector by acquiring a 40% stake in ADNOC Oil Pipelines llc. This stake was procured from leading institutional investors BlackRock and KKR, marking a notable shift in the ownership of the prominent oil pipeline operator.
ADNOC Oil Pipelines, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), plays a critical role in the region’s oil infrastructure, operating both onshore and offshore midstream crude oil pipeline assets. This network is extensive, encompassing 17 onshore and 5 offshore pipelines, spreading across 806 kilometers, and boasting a total capacity of 18 million barrels per day.
The strategic acquisition was executed through Lunate’s Long Term Capital Fund. The fund’s objective is to offer investors both attractive cash yields and opportunities for long-term capital appreciation. Lunate achieved this significant investment by purchasing a 100% stake in a special purpose vehicle that was jointly held by BlackRock and KKR-managed funds. This move comes nearly three years after BlackRock and KKR initially invested in AOP in 2019.
AOP was established in 2019 as part of a 23-year concession agreement to lease ownership interests in 22 pipelines from ADNOC. These pipelines are crucial for global energy markets, as they play an essential role in connecting energy reserves to export terminals, thereby ensuring a steady supply of energy to key global customers.
Based in Abu Dhabi, Lunate has rapidly established itself as a global powerhouse in alternative investment management, with a staggering $105 billion in assets under management. The firm’s investment strategy covers a wide spectrum of private market sectors, including buyouts, growth equity, venture capital, private credit, real assets, and public equities and credit.
Lunate’s acquisition of a stake in ADNOC Oil Pipelines signifies its ambition to be recognized as one of the world’s leading private markets solutions providers. It seeks to achieve this goal through separately managed accounts (SMAs) and multi-asset class funds. This latest move by Lunate in acquiring a significant portion of AOP not only diversifies its investment portfolio but also strengthens its foothold in the global energy market, underscoring its role as a major player in alternative investments.
