General Atlantic plans to open an Abu Dhabi office by the end of the year and move a dealmaker from London as an inaugural member of the new team, two sources familiar with the matter said.
The New York-based private equity firm, which manages funds totalling $83 billion, has received preliminary approval for a license to operate out of the Abu Dhabi Global Market (ADGM), the sources told Reuters.
Final approval is expected by the end of 2024, they said.
Details of General Atlantic’s license application are available on the ADGM’s online public register. Representatives for General Atlantic declined to comment.
General Atlantic will join other global asset managers and hedge funds which have set up in the UAE capital’s financial centre, lured by opportunities to deepen relationships with its sovereign wealth funds as other funding for buyouts dries up.
Abu Dhabi, which generates most of the Gulf state’s oil wealth, is home to some of the world’s biggest funds including Abu Dhabi Investment Authority (ADIA) and state investor Mubadala, which together manage more than $1 trillion in assets.
General Atlantic is being backed by asset manager Mubadala Capital, the sources said.
ADGM said in an emailed statement it offers “relevant public information on the status of registered and licensed entities,” adding it “continues to provide a welcoming and progressive ecosystem” for an increasing number of firms.
General Atlantic plans to relocate managing director Karim Boueiz to the Abu Dhabi office from London, where he currently focuses on its Capital Solutions strategy, the sources said.
A spokesperson for General Atlantic said that Boueiz was currently based in London, where he leads the firm’s fundraising for the Middle East, without elaborating on a timeframe for his potential relocation.
Samir Assaf, also London-based, was appointed chairman of General Atlantic’s Middle East business in February 2023.
While the Gulf had previously been a place where buyout groups would go to raise money to invest in other markets, they are now looking to build teams on the ground, invest in local businesses and help develop the region’s asset managers.
ADGM has become a magnet for millionaires, bankers and hedge funds, driven by a post-pandemic economic rebound, the UAE’s relative flexibility to evolving business needs, its convenient time zones and income tax-free status.
Big names include Ray Dalio, the billionaire and founder of hedge fund Bridgewater Associates, who opened a branch of his family office in the city last year, and Brevan Howard.
General Atlantic’s first Middle East investment was in 2015 with the acquisition of a 49% stake in payments solutions provider Network International, which has since been sold to a consortium led by Brookfield BAM.TO.
It has also invested in real estate search platform Property Finder and Turkish marketplace and e-commerce platform Trendyol.
Reuters