On this episode of the Going Long Podcast, Sarah Williamson welcomes Adel Alderbas, Chief Investment Officer of Wafra, to discuss how the firm is redefining the landscape of alternatives and pioneering new investment models that benefit both asset owners and emerging managers. For listeners interested in the intersection of long-term investing, alternative assets, and entrepreneurial innovation, this episode offers valuable insights into how to navigate these areas successfully.

Topics include: 

• [00:02:04] – Introduction and background on Wafra: Adel Alderbas introduces Wafra’s 40-year history and its evolution from a parent-focused firm into a $28 billion global alternatives manager. Their differentiated strategy includes 3 main pillars: strategic investments, real assets, and their real estate investing program. 
• [00:04:21] – The GP-Staking model explained: Alderbas describes Capital Constellation as a partnership of global investors working together to support emerging asset managers. Wafra’s unique institutional DNA, combining “LP humility” with “GP rigor,” enables it to innovate and lead in alternative investments. 
• [00:07:46] – The challenges of balancing long-range liabilities with keeping portfolios vibrant: Alderbas emphasizes prioritizing investor entrepreneurs who can build sustainable, value-adding businesses that will outlast their own leadership. 
• [00:10:39] – The importance of relationship-building: Alderbas highlights the emotional loyalty and stronger alignment that comes from backing investor entrepreneurs early, emphasizing the strategic benefits for asset owners – particularly early co-investment access and valuable market intelligence. He highlights the value of transparency, open dialogue, and intentionally collaborative relationships, contrasting this with the industry’s typical disengaged LP-GP dynamics. 
• [00:22:14] – Alderbas credits Wafra’s CEO for fostering a culture of transparency and cross-disciplinary collaboration. Alderbas emphasizes breaking down traditional investment silos—like between GPs and LPs or asset classes—which requires top-down commitment, cultural redesign, and a long-term mindset that persists through initial efforts and delayed results.
• [00:29:02] – Reflecting on the dual nature of financial innovation in private markets: While tools that increase liquidity enhance accessibility, they also introduce volatility, particularly in stressed environments. Wafra maintains a long-term conviction-based approach, resisting reactive selling to rebalance portfolios when public markets dip. 

A Legacy of Stability Meets a Vision for Growth

Founded over 40 years ago, Wafra began as a captive investment arm for Kuwait’s pension system – the firm’s initial mandate was to manage assets primarily for its parent organization. Over time, Wafra’s leadership recognized the need to evolve in an increasingly competitive and complex alternatives market.

Adel Alderbas, who took the helm as CIO after a long tenure in the firm’s real estate division, recounts how Wafra transformed itself into a global alternatives investment powerhouse with $28 billion under management. This evolution involved expanding the investor base beyond Kuwait to include a diverse set of institutional partners, including sovereign wealth funds, pension funds, and family offices. By broadening its scope, Wafra could leverage greater scale, insights, and partnerships to access unique investment opportunities.

Capital Constellation: Pioneering GP Staking

One of Wafra’s most forward-thinking initiatives is Capital Constellation, a GP-staking platform designed to support and invest alongside emerging asset managers launching their own funds. Adel explains that while traditional LP investing typically involves committing capital to established funds, Capital Constellation takes a hybrid approach, investing in first-time or early-stage funds while simultaneously acquiring equity stakes in the management companies themselves.

This dual-layered investment model fosters necessary alignment and provides asset owners with exposure not only to the fund’s financial returns but also to the long-term value creation of the asset manager as a business.

“We’re not thinking about the next five years, we’re not thinking about the next 10 years, like a typical private equity investment. We’re looking at this as a multi-generational investment firm that transcends beyond the initial founder and beyond the existing management team.”

The Advantage of Combining LP and GP Approaches

Adel highlights an important aspect of Wafra’s approach: the blending of “LP humility with GP rigor.” While many LPs remain passive investors, Wafra’s institutional mindset encourages deep engagement and operational discipline. This mindset empowers Wafra to navigate the complexities of GP staking—balancing governance, risk management, and growth objectives—while maintaining the autonomy of emerging managers.

This approach also reflects Wafra’s broader commitment to innovation. Adel notes that as markets and capital structures evolve, institutions must continuously adapt to seize new opportunities.

“We help investor entrepreneurs who are early in their journey think about how do I build a sustainable business that goes beyond me? That’s why I always emphasize that we don’t back investors. We back investor entrepreneurs.”

Looking Ahead: A Model for the Future of Alternatives

On the future of alternatives investing, Adel believes that the traditional boundaries between LPs and GPs will continue to blur as investors seek greater influence, alignment, and participation in the value creation process. Platforms like Capital Constellation are at the forefront of this shift, offering a blueprint for how institutions can innovate responsibly and effectively.

To learn more, listen to this episode of the Going Long Podcast.