Targeting Middle East, Africa, and North America Markets, the Fund Aims for Sustainable Energy Innovation
The UAE-based Hodler Investments, headquartered at Dubai Silicon Oasis, announced that it would develop the $500 million Digital Energy Infrastructure (DEI) Fund. The fund is structured as closed-ended and is designed to be focused on utility-like, income-generating assets and distributed energy infrastructure in the MENA markets and North America. The vision is to disrupt the sector through the fusion of compute applications enabled by carbon capture, storage, and utilisation technologies.
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Fund Details and Commitments
The DEI Fund, which ranges between $250 million and $500 million, has already secured soft commitments valued at up to $100 million, which are non-binding in nature and are based on final regulatory approval. The fund will consist of both cash and in-kind contributions, with the in-kind commitment being put in first and not exceeding the total capital contribution.
Mohamed El Masri, the managing director at Hodler Investments, was very optimistic about the impact such a fund could have. He said, “The investment strategy of the fund covers the whole value chain in digital energy-from clean energy and independent power producers to the multiple compute applications in data mining, blockchain, and Artificial Intelligence (AI).
Investment Strategy and Focus
It seeks to achieve zero-emissions across the majority of the DEI Fund’s portfolio. The fund will consider investments in a broad range of assets, including startup operating platforms and software companies supporting digital infrastructure. In particular, the fund is targeting early-to-growth stage companies that catalyse the development of fintech, web3, blockchain, and AI technologies.
It will also look to gain modern software technology companies that help to develop digital infrastructure. That would be in tune with its bigger strategy of making sustainable energy infrastructure more practical, in line with global demand for computing power.
“We are positive of our project to unlock natural wealth to all stakeholders, including communities,” said the managing director at Hodler Investments, Ahmed Ebrahim. “The DEI Fund is piggybacking off an existing pipeline of deals and projects that have been pre-vetted by our accredited team of professionals.”
Role of Technology in Sustainable Energy
Hodler Investments is now open to applying such breakthrough technologies as blockchain and AI to strengthen energy infrastructure. The company also believes in digital asset mining and other efficient energy solutions to make power grids stable and lead to more equitable systems for generating energy on the planet.
This fund will address the needs of the fast-growing computer clusters and, simultaneously, respect the environment. Investments in modern technologies and digital infrastructure cover the difference between the demand for energy and sustainable energy practices.
Partnership with Ento Capital Management
Hodler Investments has consequently partnered with Ento Capital Management, an asset manager based at DIFC, to advise it on the structuring, establishment, and management of the DEI Fund. Ento Capital’s expertise in the asset management sector will, no doubt, contribute significantly to the successful launch and operation of this fund.
The newly announced $500 million DEI Fund of Hodler Investments now provides a critical mass with which to lay the backbone of integrated digital technologies with sustainable energy solutions. By focusing on key markets in the MENA region and North America, the DEI Fund will be used to foster further innovation in support of the world’s emerging sustainable energy future. With substantial commitments already in place and strategic support from Ento Capital Management, it is poised to have a long-term impact on one of the most pivotal areas of digital energy.
