Hedge fund ExodusPoint Capital Management has raised $2 billion in new cash, joining peers in tapping investors seeking the relatively steady returns offered by multistrategy firms.
The fresh capital has boosted total assets at the Michael Gelband-led investment manager to $14.5 billion, according to people with knowledge of the matter. Abu Dhabi Investment Council, an independent unit of sovereign wealth fund Mubadala Investment Co., is among investors in the round, the people said, asking not to be identified discussing private information.
The fundraising — the first by ExodusPoint since 2023 when it mobilized about $1 billion — follows returns of 18% last year, its best on record as it builds out its equities group to complement its fixed-income operations. The New York-based firm debuted in 2018. Peers that have raised new money in the past year include Diego Megia’s Taula Capital Management and D.E. Shaw & Co.
Representatives for ExodusPoint and ADIC declined to comment.
Multistrategy hedge funds have been one of the fastest growing segments within the broader $5 trillion-plus industry, with investors having gradually migrated to them in recent years to benefit from a range of strategies and top trading talent.
Last year, their combined assets rose by $92 billion to $595 billion, according to data compiled by JPMorgan Chase & Co. That growth was driven by $61 billion in performance gains and $31 billion in net inflows, the highest since the bank started tracking the information in 2020.
That has also prompted several multistrategy hedge funds to refrain from taking in new money. Some, including Citadel, D.E. Shaw and Marshall Wace, have returned billions of dollars in recent years in a bid to rein in their assets and protect their ability to generate returns.
Abu Dhabi Investment Council oversees a portfolio worth roughly $160 billion . Under Chief Executive Officer Saeed Al Mazrouei, who took the helm in late 2023, the fund has launched a secondaries business, while reinforcing other parts of its portfolio including insurance, private credit and hedge funds.
ADIC’s decision to back ExodusPoint is the latest indication of Gulf funds’ desire to continue deploying capital amid conflict in the Middle East. Since the war began, regional investors have participated in deals spanning a range of sectors.
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Other entities based in the emirate have also been increasing their exposure to hedge funds. The $1 trillion Abu Dhabi Investment Authority, another sovereign wealth fund, has ramped up its use of separately managed accounts to deploy large chunks of money across dozens of hedge funds, Bloomberg News has reported previously.