Other BriefingsAbu Dhabi Courting Major UK Hedge Funds
Abu Dhabi is actively courting two major UK hedge funds, which collectively manage US$95 billion in assets, to bolster its financial ecosystem. Marshall Wace, a US$65 billion hedge fund, is in talks with Abu Dhabi authorities to establish a presence in the UAE capital, as reported by multiple sources.
Additionally, Capula Investment Management, based in London, is considering opening an office in Abu Dhabi to expand its operations, Bloomberg noted, citing informed sources.
This development comes after Abu Dhabi Global Markets (ADGM) reported a 211 percent increase in Assets Under Management (AUM) in Q1 2024 compared to the same period in 2023. By March’s end, the international financial center had 107 fund and asset managers overseeing 137 funds.
UK fund managers increasingly view Abu Dhabi as a strategic gateway to tap into the region’s growing wealth. In November, British hedge fund billionaire Chris Hohn’s TCI Fund Management Limited, managing US$60 billion, opened an office in the UAE capital to cultivate “key regional relationships.”
The Middle East holds significant allure for the investment management sector due to talent availability, growth prospects for assets, and its role in global initiatives addressing climate change and reducing carbon emissions.
In February of the previous year, Brevan Howard Asset Management, co-founded by UK billionaire Alan Howard, launched its Abu Dhabi office with 90 employees. Co-founder Trifon Natsis also relocated to the UAE capital.
Salem Mohammed Al Darei, CEO of ADGM Authority, highlighted the center’s expansion in a May interview with Zawya, stating, “ADGM’s proximity to Sovereign Wealth Funds (SWFs) and its capital resources in Abu Dhabi have elevated the UAE’s financial stature and positioned it as a gateway to Abu Dhabi’s growing economy.”
Abu Dhabi’s growing appeal as a financial center in the Middle East
Abu Dhabi’s financial hub is currently in discussions with more than 60 global finance firms, including asset managers and hedge funds, interested in establishing a presence in the UAE capital.
According to Arvind Ramamurthy, chief of market development at Abu Dhabi Global Market, there is a surge of interest from firms in the UK, the US, and Asia looking to enter the region.
Speaking to Financial News, Ramamurthy noted, “Abu Dhabi fundamentally is a city for enterprises. We have some of the largest sovereign wealth funds and banks here… Some very prestigious names across asset management and hedge fund sectors are in the pipeline.”
ADGM is actively engaging with 25 hedge funds seeking to expand operations in the Middle East.
Brevan Howard, managing US$36 billion in assets, opened its Abu Dhabi office in February 2023 and has since grown its team to over 80 members in the UAE capital. Co-founder Trifon Natsis and compliance head Ryan Taylor relocated to Abu Dhabi in 2023. Chris Hohn’s TCI Fund Management launched its Abu Dhabi office in November of last year.
In an April interview with Financial News, Parvoleta Shtereva, co-founder of Gemcorp, disclosed plans to move staff from London to their upcoming Abu Dhabi office later this year. Fiera Capital, managing over US$160 billion in assets, established its ADGM office in February this year.
Per Ramamurthy, Abu Dhabi’s family-friendly environment has been pivotal in attracting leading investment management professionals and their families to relocate there. This influx has enriched the emirate with a diverse and exceptional talent pool. Factors such as abundant opportunities, robust infrastructure, high quality of life, and favorable visa regulations have all contributed to this trend. Additionally, local universities are also contributing talent to this growing community in Abu Dhabi.
