Abu Dhabi’s ADQ Forms $1.2B Mining Joint Venture With Orion Resource Partners

ADQ—the Abu Dhabi Developmental Holding Co.—a $225 billion Abu Dhabi-based sovereign wealth fund, has formed a 50-50 joint venture with Orion Resource Partners USA L.P., the fund announced Thursday. The venture, Orion Abu Dhabi, will target investments in metals and mining companies, initially focused on emerging markets in Africa, Asia and Latin America.

According to the announcement, the venture will deploy an initial $1.2 billion of capital over the course of the next four years. The new group seeks to make investments across equity, debt and production-linked instruments, with a focus on minerals critical to energy transition, economic growth and supply chain security.

“As part of its investment strategy, Orion Abu Dhabi will secure long-term agreements to source essential minerals, including copper, high grade iron ore, and other key commodities important for global supply chain security and the energy transition,” ADQ stated in the announcement.

Orion Resource Partners manages $8 billion in assets for institutional investors across liquid and less liquid strategies in the mining and resources sectors. Its portfolio companies include lithium, silver and gold mines and other resource companies.

For more stories like this, sign up for the CIO Alert newsletter. 

The joint venture will become part of ADQ’s recently established infrastructure and critical minerals cluster, which has investments in other infrastructure and resource investors like Alpha Dhabi Construction holdings and the Plenary Group. The goal of the group is to contribute to the city’s economy and help downstream industries, such as manufacturing, deal with challenges sourcing critical materials.

ADQ is a significant investor in resources and infrastructure; its portfolio is comprised of companies in the energy and utilities; food and agriculture; sustainable manufacturing; infrastructure and critical metals; real estate, health care and life sciences; and financial sectors. The sovereign fund provided Abu Dhabi with 22% of its non-oil revenue in 2023.

“As a long-term investor, we are committed to ensuring that our portfolio companies are set up for success in an ever-changing operating environment,” said Hamad Al Hammadi, ADQ’s deputy group CEO, in a statement. “The establishment of Orion Abu Dhabi is a natural step for us, allowing our companies to execute their ambitious growth plans with the assurance of a resilient supply of essential resources.”

Abu Dhabi’s ADQ to Take Minority Stake in Sotheby’s for $1B

Abu Dhabi Pension Fund and ADQ to Invest $2.1 Billion in Gas Pipelines

Tags: Abu Dhabi, ADQ, Orion Abu Dhabi, Orion Resource Partners, Sovereign Wealth Fund

Santa Clara University this week announced the promotion of Frank Tessier to CIO of the university’s $1.55 billion endowment.

“Santa Clara University is fortunate to have Frank Tessier as its next chief investment officer,” said Wilson Garone, the university’s vice president for finance and administration, in a statement. “Frank lives the University’s values of integrity, excellence, and collaboration every day, and his deep familiarity with each of our strategic partners positions him to make an immediate impact.

Tessier had been an investment director at the endowment since 2021. Previously, he was a senior portfolio manager at Radar Partners, and he began his career at Makena Capital Management, where he specialized in asset allocation and portfolio construction.

Tessier will succeed John Kerrigan, who is retiring from his role as CIO after more than 22 years.

For more stories like this, sign up for the CIO Alert newsletter. 

“[Kerrigan] has overseen the growth of the endowment from $425 million in 2002 to its current value of $1.55 billion,” Garone said in a statement. “Over the past decade, the endowment has performed in the top decile of U.S. endowments of $1 billion [and greater]. The University owes him a great debt of gratitude for his service.”

Kerrigan will continue supporting the investment office to ensure a smooth transition when he retires at the end of the academic year.

“It has been a privilege to play a role in advancing Santa Clara University’s mission,” Kerrigan said in a statement. “As CIO, Frank Tessier will do a superb job focusing on the endowment’s performance and maintaining robust relationships with key stakeholders.”

Tessier earned a bachelor of science degree in mechanical engineering and finance from Washington and Lee University and an MBA from the Stanford Graduate School of Business.

“I am deeply honored to be selected as Santa Clara University’s next CIO,” Tessier said in a statement. “As someone who is passionate about Jesuit education and its mission to shape ethical leaders for a better world, I am inspired by the values and vision that guide this incredible institution. I look forward to building upon the strong foundation that has been laid and working collaboratively to steward the University’s investments in a way that supports Santa Clara and ensures a bright future for generations to come.”