Nuveen becomes second trillion-dollar asset manager to open base in Abu Dhabi this month

US investment firm serves about 400 institutional clients in Europe, Middle East and Africa

The number of fund and asset managers operating in ADGM reached 112 at the end June. Khushnum Bhandari / The National

Investment firm Nuveen has opened its first Middle East office at Abu Dhabi Global Market, making it the second trillion-dollar asset manager to set up base in the UAE capital this month.

Nuveen, which has its headquarters in Chicago and oversees about $1.2 trillion of assets under management, has completed its registration with ADGM and aims to cater to the "unique needs" of a rising affluent investor base in the UAE, it said in a statement on Thursday.

The 125-year-old firm is the second asset manager with a 13-figure AUM to set up base in Abu Dhabi after PGIM, the global asset management business of Prudential Financial with $1.33 trillion in assets under management, opened its office this month.

Nuveen, the wholly owned subsidiary of US teachers pension fund TIAA, serves about 400 institutional clients in Europe, Middle East and Africa, including pension funds, insurance companies, sovereign wealth funds, banks and family offices. The expansion is part of Nuveen's international growth strategy, said chief executive William Huffman.

"The Middle East market has been actively investing in forward-looking opportunities including infrastructure, renewable energy and real estate technology for some time now," he said. "Based on our conversations with investors, we believe our reputation ... aligns closely with the needs of clients in the region."

ADGM, established in 2015, is one of the world's fastest-growing financial districts, with Abu Dhabi focusing on attracting more international companies and investors. By the end of June, the number of fund and asset managers operating in ADGM reached 112, managing 141 funds.

Some of the major names within the asset management sector that have been granted a financial service providers (FSPs) licence include AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services and Morgan Stanley.

In the first half of this year, the capital’s financial centre registered 231 financial services companies – up 31 per cent from the same period last year – with the total number of companies setting up base in ADGM reaching 2,088 by the end of June. ADGM also issued 1,271 new licences in the first half of the year, up 20.5 per cent on an annual basis, while the number of FSPs granted a licence during the period rose 90 per cent to 42, ADGM said last month.

Last week, US-based alternative investment company Stonepeak, which has $71.2 billion of AUMs, received regulatory approval to set up its base at ADGM to arrange and advise on investment opportunities in the UAE.

ADGM has also announced new measures to attract more companies to the financial centre. In July, it said it plans to cut commercial registration licence fees for certain categories while raising them for others, as part of its transitional strategy after the financial district expanded to include Reem Island.

“Our registration with ADGM follows growing interest from seasoned, performance-driven institutions and investors across the Middle East region," said Mike Perry, head of Nuveen's global client group.

Fadi Khoury, former Middle East managing director of Columbia Threadneedle, has been named managing director and Middle East chief of Nuveen's ADGM office.