UAE-based Hodler Investments revealed on Tuesday the launch of a $500 million Digital Energy Infrastructure (DEI) Fund, aimed at the MENA markets. The Dubai Silicon Oasis company's closed-ended fund will focus on investing in income-generating assets and distributed energy infrastructure for compute applications, utilizing innovative carbon capture, storage, and utilization methods.
Mohamed El Masri, the managing director of Hodler Investments, informed Khaleej Times that they have secured preliminary commitments, subject to final regulatory approval, totaling up to $100 million in cash and in-kind contributions. The DEI fund is anticipated to be between $250 million and $500 million, inclusive of in-kind commitments, not exceeding the total capital commitments.
The fund's investment strategy encompasses the entire digital energy value chain, including clean energy, independent power producers (IPPs), data mining for blockchain, decentralized physical infrastructure (DePIN), AI, cloud, and other compute cluster applications, aiming for zero-emissions across the majority of its portfolio. It will also invest in startup operating platforms and software, targeting early-to-growth stage modern software technology companies involved in digital infrastructure and software applications that support fintech, web3, blockchain, and AI.
Ahmed Ebrahim, managing director of Hodler Investments, expressed confidence in the initiative, stating that the DEI Fund is leveraging a pipeline of vetted deals and projects. The fund intends to employ technologies like blockchain, AI, digital asset mining, and energy resources to enhance the viability of sustainable energy infrastructure, addressing the rising demand for computing power and contributing to global power grid stability.
Hodler has engaged DIFC-based Ento Capital Management as the asset manager to advise on the fund's structuring, establishment, and management.
