‘Don’t go with a fund, go with a solution’: CEO’s tips from decades of global investing
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BlueFive Capital CEO Hazem Ben-Gacem advises investors to prioritize problem-solving ventures that align with national strategic interests. He emphasizes that capital is readily available for projects addressing food security, defense, and infrastructure, particularly in the Middle East.
Strategic Investing in a Shifting Global Landscape
Hazem Ben-Gacem, the founder and CEO of Abu Dhabi-based BlueFive Capital, has recently articulated a transformative philosophy for modern private market investing. Drawing on his decades of experience, Ben-Gacem suggests that the era of generic fund-based investing is evolving into a more targeted, mission-driven approach. By focusing on "solutions" rather than traditional asset pools, investors can better navigate the complexities of the current macroeconomic environment.
The Shift Toward National Priorities
A cornerstone of Ben-Gacem’s strategy is the alignment of private capital with the strategic goals of sovereign nations. In the Middle East, this trend is particularly pronounced, as sovereign wealth groups are increasingly prioritizing domestic stability and long-term resilience. Ben-Gacem posits that "smart money" is no longer just chasing yield; it is actively seeking opportunities that serve as catalysts for government-led initiatives.
Critical Sectors for Capital Deployment
Ben-Gacem specifically highlights three pillars—food security, defense, and infrastructure—as the most fertile grounds for investment. These sectors are not merely profitable; they are essential for state longevity and sovereign independence. By framing investment opportunities as solutions to these specific national challenges, firms can tap into a deep reservoir of available capital that is specifically earmarked for projects that reinforce national interests.
Moving Beyond the Traditional Fund Model
The CEO’s advice to "not go with a fund, go with a solution" marks a departure from the traditional capital-raising playbook. Historically, fund managers marketed themselves based on past performance and asset diversification. Ben-Gacem suggests that in the current climate, the value proposition must shift toward tangible contributions to a country’s strategic roadmap. This approach requires deeper collaboration between the private sector and government entities.
Broader Implications for Global Markets
This paradigm shift has profound implications for global private equity and venture capital. As nations become more protectionist and focused on internal security, international investors must adapt to become partners in development rather than passive financial participants. This trend is likely to continue as global geopolitical tensions necessitate stronger domestic supply chains and modernized critical infrastructure.
Conclusion: The Future of Sovereign-Aligned Investing
Ultimately, Ben-Gacem’s insights provide a roadmap for navigating an increasingly complex global landscape. By centering investment strategies on the fundamental needs of the state, firms like BlueFive Capital are positioning themselves to thrive where others might falter. As sovereign capital continues to dominate the investment narrative, those who provide viable, scalable solutions to critical national challenges will likely command the most significant market influence in the coming decade.