Capital Group, which manages $3.6 trillion in assets, has secured a licence from the Financial Services Regulatory Authority of Abu Dhabi's ADGM to operate as a regulated investment manager and expand operations across the region.
The development comes after the company announced plans to set up its first Middle East office in Abu Dhabi in May, with Capital relocating associates from North America, Europe and Asia to support clients in the region.
The company will now be able to conduct trading, investment management and distribution activities within Abu Dhabi's financial centre, it said in a statement on Wednesday.
“Establishing a regulated presence in Abu Dhabi brings us closer to our clients and to the investment opportunities across the Middle East, a region where we have been active for many years,” said Benno Klingenberg-Timm, head of Abu Dhabi office and head of institutional for Europe and Asia at Capital Group.
“From day one, we will have a meaningful presence, with on-the-ground investment, operational and client-facing capabilities,” he added. The move reflects “our confidence in the region’s long-term growth”, Mr Klingenberg-Timm said.
Capital Group’s expansion adds to the growing number of global investment firms setting up in Abu Dhabi.
ADGM, the largest international financial centre in the Middle East and Africa by number of active licences, has continued to attract global institutions, despite the Iran war.
New Mountain Capital, an alternative investment firm based in New York, said on Tuesday it was opening an office in ADGM to strengthen its presence in the Middle East.
Founded in 1999, New Mountain has about $60 billion in assets under management across its private equity, credit and net lease investment strategies.
“We have been privileged to work with many leading investors in the region for years and establishing a local presence will allow us to deepen those relationships while building new partnerships over time,” said Adam Weinstein, president and chief operating officer.
Last week, Eurazeo, a European asset manager with €40 billion ($45.2 billion) in assets under management, opened an office in ADGM.
Global private markets firm Pantheon last week opened its first Abu Dhabi office in ADGM to expand its presence in the Middle East and tap growing demand from investors across the Gulf.
A base in Abu Dhabi provides global investors and money managers with opportunities to expand regional operations and work closely with some of the world's biggest sovereign wealth funds, as well as large family offices and institutional partners.
Other high-profile companies that the UAE capital has attracted in recent months include private credit lender Blue Owl Capital, tech-focused US company Vista Equity Partners, the world’s largest listed hedge fund Man Group, Barings, Bain Capital, Cantor and Swiss derivative investment company Adapt Investment Managers.
Collectively, asset managers that established operations in ADGM in the first half of the year oversee more than $2.1 trillion in global assets under management.
Capital Group’s “decision reflects the strength of Abu Dhabi’s financial ecosystem and ADGM’s growing position as a leading international financial centre for global institutions seeking long-term opportunities across the region”, said Ahmed Al Zaabi, chairman of ADGM.
