AltNovel, a private markets platform based in Abu Dhabi and regulated by the Financial Services Regulatory Authority (FSRA), has partnered with 3iQ, a global digital asset investment manager, to launch the AltNovel Digital Access Portfolio (ADAP). This marks the first multi-strategy digital assets fund in the Middle East.

ADAP is designed as a multi-strategy portfolio comprising alpha-oriented digital asset hedge funds. It aims to deliver high absolute returns while maintaining a reduced correlation to traditional assets and hedge funds. The fund targets improved risk-adjusted returns compared to assets like Bitcoin, stocks, and other digital assets. Its objectives include lower volatility and drawdowns relative to long-only digital assets, with a goal of over 20% in annualized returns and mitigating drawdowns to as low as 2.4%. It is designed for professional qualified investors.

The fund combines 3iQ's expertise in digital asset management with AltNovel's portfolio structuring. It aims to offer diversified exposure to the rapidly growing asset class. AltNovel, located in Abu Dhabi Global Market (ADGM), acts as a bridge connecting global investment opportunities and regional private wealth through technology.

Stergios Voskopoulos, CEO of AltNovel, stated that this partnership marks a milestone for AltNovel, aligning with their focus on bringing high-quality investment solutions to private investors in the GCC. He emphasized that digital assets represent the next frontier in portfolio diversification, and the collaboration with 3iQ supports their commitment to offering institutional-grade digital asset investment opportunities.

Pascal St-Jean, President and CEO of 3iQ, noted the United Arab Emirates' position at the forefront of financial innovation and digital assets regulation. He expressed enthusiasm for partnering with AltNovel to bring their expertise in risk management and digital asset strategies to the region, citing increasing demand for institutional risk-managed solutions.

The partnership aims to provide diversified exposure to digital asset investment strategies, reducing volatility while delivering returns. Both firms share a belief in the transformative potential of digital assets in the financial landscape.

AltNovel, founded in 2023, focuses on alternative investment solutions for accredited investors, emphasizing transparent and curated opportunities in private markets with a focus on diversification and sustainable returns. 3iQ, founded in 2012, is a digital asset manager, launching products like the Digital Assets Managed Account Platform (QMAP) and Bitcoin and Ethereum ETPs. In 2024, Monex Group acquired a majority stake in 3iQ.