An investment partnership between Ray Dalio’s family office and Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan has been postponed due to Bridgewater Associates dealing with the legal complexities of Dalio’s exit from the firm.
Concerns have arisen over whether Dalio might use Bridgewater’s intellectual property in the new partnership, according to sources familiar with the situation. Dalio, who led Bridgewater to become a $160 billion giant, had signed a non-compete agreement when he left the firm years ago. This agreement is now under scrutiny with his planned venture with Sheikh Tahnoon, a top Bridgewater client.
In a statement, Dalio and Bridgewater emphasized that there have been no disputes or discussions about these issues, and any claims to the contrary are false. They also declined to comment on their client partnerships.
The partnership, intended to launch last year, aimed to establish an asset management arm within Abu Dhabi’s international financial center for G42, Sheikh Tahnoon’s AI firm. Dalio has been providing informal advice and might manage some funds for a fee.
Representatives for G42 and Dalio’s family office did not comment. Dalio, who has significantly contributed to Abu Dhabi’s hedge fund appeal, set up a branch of his investment firm in the emirate last year, collaborating with Sheikh Tahnoon.
While the DFO-G42 partnership’s formal launch is on hold, several employees have transitioned between the two companies, including Ali Hegazi, who recently joined Dalio’s family office in Abu Dhabi.
G42, aiming to become a leading AI entity in the Middle East, has faced scrutiny over its investments. Recently, it shifted focus from China to the US. Dalio and G42 have also collaborated on environmental initiatives, including a project to protect Indonesia’s marine ecosystem.
