The Abu Dhabi Investment Authority (ADIA) has raised the share of its portfolio set aside for private equity and hedge funds. It widened its range for financial alternatives, the category that houses hedge funds and managed futures, to between 7% and 12%, from 5% to 10%. To make room, the fund trimmed its real estate range to between 2% and 7%, from 5% to 10%, though it stressed that absolute exposure to property held steady and that the reduction reflected the relative growth of other asset classes rather than a retreat from real estate.

In his letter accompanying the review, managing director Hamed bin Zayed Al Nahyan highlighted a more systematic and higher-velocity approach to deploying capital. For ADIA’s Private Equities Department, 2025 was a year of active portfolio churn on both sides of the ledger. The team, which operates across buyouts, growth equity, private credit, and venture capital, leaned heavily into take-private transactions alongside its core general partners.

Technology was the priority, with the department backing the take-private of Dayforce, a US human resources software platform, and investing in IFS, a European cloud software company focused on industrial artificial intelligence applications. Healthcare and industrials featured prominently too. ADIA joined a consortium to take US-headquartered Hologic private, gaining exposure to a leader in mammography and molecular diagnostics, and backed the French diagnostics group Sebia.

Industrial commitments spanned Alvest, a Paris-based maker of airport ground support equipment, SK Specialty, a South Korean supplier of high-purity gases for semiconductor manufacturing, and Clarience Technologies, a US commercial vehicle safety business. In consumer, the fund invested in European Camping Group and expanded its stake in the ice cream manufacturer Froneri through a GP-led liquidity process. For a fund now leaning further into the asset class, ADIA also demonstrated an ability to get money back out.

The department agreed the sale of its stake in Pension Insurance Corporation, a UK specialist insurer, and offloaded its holding in the packaging group IFCO. Its longest-held win came from Medline, the healthcare supplies distributor it had owned since 2018, which reached the public markets in what ranked as the largest initial public offering globally in 2025. On the hedge fund side, ADIA’s Alternative Investments Department reported strong absolute returns with minimal correlation to equity markets, and continued to expand its use of a managed account platform.

The department signalled it would keep pursuing top-tier managers and talent through 2026.