International Holding Company (IHC), a major Abu Dhabi conglomerate led by a prominent member of the UAE ruling family, has announced the creation of a new holding company, 2PointZero. This strategic move involves transferring a $27 billion portfolio from Royal Group, IHC’s largest shareholder, and a key component of Sheikh Tahnoon bin Zayed al-Nahyan’s business empire. The portfolio spans various industries, including asset management, mining, and financial services, with assets like alternative asset manager Lunate and energy-focused International Resources Holding being key contributors.
Evolution of IHC:
Formerly known as International Fish Farming Holding, IHC has undergone a remarkable transformation, evolving from an obscure seafood producer and real estate investor to a significant conglomerate. Its market capitalization, which surged since 2020, has reached $240 billion, surpassing even global alternative asset manager BlackRock. The conglomerate’s expansion and diversification have positioned it as a key player in the UAE’s economic landscape.
Formation of 2PointZero:
The creation of 2PointZero marks a strategic initiative by IHC to consolidate and streamline its diverse portfolio. The $27 billion worth of assets, currently housed under Royal Group, will be transferred to 2PointZero, subject to regulatory approvals. This move is expected to enhance operational efficiency and provide a more cohesive structure for managing IHC’s extensive holdings.
Inclusion of Key Entities:
Several noteworthy entities will become part of 2PointZero’s portfolio. Lunate, an alternative asset manager, will be a significant addition, particularly after the recent launch of the $30 billion climate fund ALTÉRRA in collaboration with BlackRock, Brookfield, and TPG. International Resources Holding, known for its $1.1 billion investment in Zambia’s Mopani Copper Mines and focus on energy transition minerals, will also be incorporated into the new entity.
Expansion into Financial Services:
Egyptian financial services firm Beltone Holding, in which Royal Group holds a 56% stake, is slated to join 2PointZero, pending regulatory approval. The move into financial services aligns with IHC’s diversified strategy and underscores its intention to operate across various sectors.
Leadership and Strategic Vision:
IHC is under the leadership of Sheikh Tahnoon bin Zayed al-Nahyan, a prominent figure in the UAE business landscape. Besides overseeing IHC, Sheikh Tahnoon is the national security adviser and a key foreign policy adviser to his brother, President Sheikh Mohammed bin Zayed al-Nahyan. He also holds leadership positions in major Abu Dhabi wealth funds, including Abu Dhabi Investment Authority and ADQ, and chairs First Abu Dhabi Bank, the largest lender in the UAE.
Market Response:
The announcement of 2PointZero’s formation has positively impacted IHC’s market performance, with shares experiencing an increase of up to 3.2% in early trading. Additionally, Beltone Holding’s shares on the Cairo stock exchange surged over 10%, reflecting investor confidence in the strategic moves made by IHC.
Diverse Investments:
The inclusion of private investment firm Chimera Investments, special purpose vehicle Sagasse Investments, and Citadel Technologies, specializing in crypto mining and Bitcoin extraction, highlights the diversity of assets within 2PointZero. This broad spectrum of investments positions the new holding company as a robust player across traditional and emerging sectors.
In conclusion, the establishment of 2PointZero represents a pivotal moment for IHC, streamlining its expansive portfolio and reinforcing its commitment to diverse and strategic investments. The move is aligned with the conglomerate’s vision for sustained growth and adaptability in a rapidly evolving global economic landscape.
