Coinvesting Capital Ltd, an asset manager regulated by the Dubai Financial Services Authority (DFSA), has launched the Coinvesting Bread Real Estate Fund L.P., a new initiative targeting the UAE’s real estate market. The fund, based in the Dubai International Financial Centre (DIFC), uses a dual structure that aligns with two major financial frameworks: DIFC and Luxembourg. This approach allows the fund to meet both local and international regulatory standards, reinforcing its position within a broader institutional governance framework.
A Unique Cross-Border Investment Structure
The Coinvesting Bread Real Estate Fund L.P. has been established as an exempt fund under DFSA regulation, alongside a parallel feeder vehicle, the Coinvesting Bread Real Estate Fund SCSp, which is incorporated under Luxembourg law. Although the Luxembourg vehicle is in the process of being registered with the Luxembourg Financial Services Supervisory Commission (CSSF), it is not yet under CSSF supervision. The fund’s management is overseen by Caibuo Capital S.à r.l., a company licensed by the CSSF, which adds an additional layer of governance and expertise.
This structure is the first of its kind, combining regulatory oversight from both Dubai and Luxembourg. It sets a precedent for structuring investments into the UAE’s property sector, which is increasingly attracting global capital. This dual framework reflects how the UAE’s real estate market is entering a phase of greater global integration, offering investors a regulated path to access opportunities in a historically dynamic region.
Strengthening Governance and Oversight
Coinvesting Capital Ltd, acting as the fund manager, operates under its DFSA licence. The fund’s general partner includes key industry figures, Michael Ruben, CEO of Bread Capital Ltd, and David Szerer, CMO of Bread Capital Ltd. Their involvement brings significant experience in asset management and capital markets, ensuring strong governance and operational oversight. Their leadership reflects a commitment to combining regional expertise with international best practices in institutional investment.
UAE’s Real Estate Market at a Crossroads
The launch of the Coinvesting Bread Real Estate Fund highlights the UAE’s growing role as a destination for institutional capital. Eddy Abramo, CEO of Coinvesting Capital Ltd, commented, “The launch of this fund underscores the UAE’s position as a credible destination for institutional capital.” The UAE has long been a hub for real estate activity, and with recent government reforms and increasing foreign investment, cities like Dubai and Abu Dhabi are becoming central to global investment strategies.
The fund’s launch comes at a time of record real estate activity in the UAE. As reforms continue and foreign capital flows into the market, the establishment of a regulated fund accessible via both DIFC and Luxembourg offers institutional investors a structured, regulated entry point into the UAE market. This marks a significant development in the UAE’s evolution into a global financial hub.
The UAE’s ability to align its regulatory standards with those of mature international markets demonstrates its commitment to meeting the needs of institutional allocators worldwide. The new fund underscores the broader shift within the UAE’s real estate sector, positioning it as a key player in the global investment landscape. For more insights into the UAE’s growing influence, you can also read about the launch of the Future Health initiative and how it reflects the country’s broader ambitions in global transformation.
