Private equity and alternative asset managers overseeing more than $700bn in assets are accelerating their expansion into the United Arab Emirates, attracted by the region’s deep capital reserves and resilience amid geopolitical tensions, according to a report by Bloomberg.
Sweden’s EQT, France’s Eurazeo, and UK-based Pollen Street Capital are among the latest firms establishing a presence in Abu Dhabi, sources familiar with the matter said. They join a growing roster including growth equity investor Baron Capital Management and credit specialist Silver Point Capital, which have recently opened offices in Dubai.
While representatives for the firms declined to comment, the move reflects a broader industry shift. After years of primarily raising funds in the Gulf, global private capital managers – including Brookfield Asset Management and KKR – are increasingly deploying investment professionals on the ground to actively pursue deals.
Executives remain optimistic that ongoing tensions linked to the Iran-Israel conflict will not significantly disrupt the UAE’s investment momentum.
EQT, which manages over $300bn in assets, is reportedly finalising plans to open an Abu Dhabi office staffed with investment professionals to support deal activity across the Middle East. The firm’s regional expansion may extend to other key cities, involving new hires and relocations, spanning its private equity, infrastructure, venture capital, and real estate strategies.
Paris-based Eurazeo, overseeing $40bn, aims to launch its Abu Dhabi office this year, with further regional growth planned. Led by managing director Adrien Pinelli – a former French diplomat experienced in Gulf partnerships – Eurazeo’s push includes both fundraising and local investments, supported by staff relocations from Europe.
Pollen Street Capital, with approximately $7bn under management, is also in early stages of Middle East expansion, having recently registered in Abu Dhabi.
HarbourVest Partners, managing $147bn, is reportedly exploring a UAE office, while Baron Capital Management, with $41bn in assets, has registered in Dubai.
These moves follow Partners Group’s June announcement of a new regional headquarters in Abu Dhabi to strengthen its private wealth platform. The Zurich-listed firm, which manages over $150bn, aims to build on its Dubai foothold established in 2010.
The UAE’s appeal is reinforced by high interest rates and sluggish deal pipelines in Western markets, driving managers to seek growth opportunities and deepen ties with Gulf sovereign funds and ultra-high-net-worth investors – vital limited partners for private capital funds.
Brookfield has expanded its regional footprint with a $2bn dedicated fund and a $1bn real estate joint venture, while KKR appointed former US General David Petraeus as chairman of its Middle East business in April and is assembling a local team. Other major players, including Warburg Pincus and Permira, have pledged to grow regional headcount.
Private equity’s growing presence in the UAE parallels a surge of hedge funds and alternative managers attracted by $3tn held by sovereign wealth and wealthy families, zero personal income tax, time zone advantages, and a high quality of life.
Leading hedge funds such as Brevan Howard Asset Management, Millennium Management, and Point72 Asset Management have established hubs in the UAE, with top traders increasingly relocating.
In May, Silver Point Capital launched operations in Dubai’s new Hedge Fund Center – a shared workspace hosting around 45 firms. Tim Lee, Head of Fundraising for EMEA, will lead its regional efforts.
Specialist credit managers like Pearl Diver Capital are also setting up bases in the emirate, while market makers such as Jane Street Group have filed to open a local office in Abu Dhabi.
The UAE is also benefiting from an influx of wealthy individuals relocating from the UK, following recent tax hikes. Indian heir Shravin Bharti Mittal moved to the region and launched a local branch of his London-based investment firm, Unbound.
Notable UK-born industry figures, including Brevan Howard’s Jonathan Hughes and BlueCrest Capital’s Michael Platt – one of Britain’s wealthiest individuals with an estimated net worth of $11.8bn – have recently established residency in the UAE, signalling the region’s growing allure for private capital and wealth management.
