Investment Strategy
The Aga Khan Development Network (AKDN) is one of the world’s largest and most comprehensive private development organizations, managing approximately $12 billion in group assets. Founded and guided by His Highness the Aga Khan, the spiritual leader of the Shia Ismaili Muslim community, AKDN operates in over 30 countries across Asia, Africa, the Middle East, and Europe. The network employs approximately 80,000 people and comprises a group of agencies that address development challenges through integrated programs in economic development, health, education, culture, architecture, and rural development.
AKDN’s structure is unique among major development organizations. Unlike traditional philanthropies that operate primarily through grantmaking, AKDN combines nonprofit development agencies with commercially operating investment vehicles. The Aga Khan Fund for Economic Development (AKFED), the network’s economic development arm, manages a portfolio of over 90 companies and investments that operate as commercially viable enterprises in developing economies. Profits from AKFED’s commercial operations are reinvested into further development activities rather than distributed to shareholders.
AKFED’s investment portfolio spans multiple sectors: aviation (including Jubilee Insurance and other companies), banking and financial services (with stakes in banks across East Africa and Central Asia), energy (hydroelectric and solar projects), hospitality and tourism (the Serena Hotels chain), industry, infrastructure, media, real estate, and telecommunications. These investments are designed to catalyze economic development in underserved markets by creating profitable enterprises that generate employment, tax revenue, and economic activity.
The broader AKDN also includes the Aga Khan Foundation, which focuses on poverty solutions; the Aga Khan University, with campuses in Pakistan, East Africa, and the UK; the Aga Khan Health Services; and the Aga Khan Trust for Culture, which has restored major historic sites and landscapes across the Islamic world.
Private Markets Approach
AKDN’s private markets approach is fundamentally different from most institutional investors. Rather than committing capital to third-party funds, AKFED primarily operates through direct ownership stakes in companies and projects across developing economies. This operating company model gives AKDN hands-on management control and the ability to direct business strategies toward development outcomes.
In financial services, AKFED holds significant stakes in banks and insurance companies across East Africa, Central Asia, and South Asia. The Habib Bank AG Zurich, Diamond Trust Bank (Kenya and East Africa), and First MicroFinanceBank (multiple countries) are among the financial institutions in which AKFED has ownership positions. These banking investments provide financial inclusion in markets where access to formal financial services remains limited.
In infrastructure and energy, AKFED has invested in hydroelectric power projects, solar energy installations, and telecommunications infrastructure in markets where energy access and connectivity are critical development bottlenecks. The Industrial Promotion Services (IPS), an AKFED subsidiary, manages a portfolio of industrial and infrastructure investments across East Africa.
The Serena Hotels chain, which operates luxury and business hotels across Africa and South Asia, represents AKFED’s hospitality portfolio. These hotels serve the business and tourism sectors in developing markets while generating revenue that supports AKDN’s broader development mission.
Fund managers considering engagement with AKDN should understand that the network’s investment model centers on direct ownership and operating control rather than passive fund commitments. However, AKDN has participated in co-investment and partnership structures with other development finance institutions and private investors. Managers with deep expertise in frontier and emerging markets, particularly in Sub-Saharan Africa and Central and South Asia, may find partnership opportunities with AKFED’s existing portfolio companies and investment activities.
Frequently Asked Questions
How large is the Aga Khan Development Network?
The Aga Khan Development Network (AKDN) manages approximately $12 billion in total group assets across its constituent agencies. AKDN is one of the world's largest private development networks, operating in over 30 countries across Asia, Africa, the Middle East, and Europe. The network's investment activities are conducted primarily through the Aga Khan Fund for Economic Development (AKFED), which manages a portfolio of companies and investments in developing economies. AKDN employs approximately 80,000 people globally.
What is the Aga Khan Fund for Economic Development?
The Aga Khan Fund for Economic Development (AKFED) is the economic development arm of AKDN, operating a portfolio of over 90 companies and investments in developing countries. AKFED's investments span aviation, banking and financial services, energy, hospitality and tourism, industry, infrastructure, media, real estate, and telecommunications. Unlike traditional development agencies, AKFED operates commercially viable enterprises that generate economic growth and employment while reinvesting profits into further development activities. Notable investments include stakes in banks across East Africa, luxury hotels under the Serena Hotels brand, and energy infrastructure projects.
How can fund managers approach AKDN?
AKDN's investment activities are coordinated through its Geneva headquarters, with AKFED managing the commercial portfolio. The network does not issue formal RFPs for external investment allocations. Fund managers whose strategies align with AKDN's geographic focus areas, particularly Sub-Saharan Africa, Central and South Asia, and the Middle East, may find strategic alignment. Managers with expertise in financial services, infrastructure, energy, or hospitality in developing markets should understand AKFED's operating company model, which often involves direct ownership stakes rather than traditional fund commitments.
