Lunate, the Abu Dhabi-based alternative investment manager, and Blue Owl Capital, the NYSE-listed alternative asset management firm, have entered a joint venture to invest in private market investment managers.

The JV seeks to acquire minority stakes in private market investment managers with fee-paying assets under management of less than $10 billion.

Lunate is said to contribute about $500 million to the effort, for which Blue Owl is seeking to raise $2.5 billion, according to a Bloomberg, citing a person familiar with the matter.

Based in Abu Dhabi Global Market, Lunate is owned by the Abu Dhabi sovereign-backed Chimera Investment LLC, managing $105 billion in assets.

(Writing by Bindu Rai, editing by Seban Scaria)