Two more global investment firms have made Abu Dhabi their regulated home in the space of two days. Capital Group, which manages $3.6 trillion in assets, secured a licence from Abu Dhabi’s Financial Services Regulatory Authority to operate in the city’s financial centre, ADGM, it said in a statement on Wednesday. A day earlier, New York-based New Mountain Capital, with about $60 billion under management, opened its office in ADGM as New Mountain Capital Middle East Limited.
The licence changes what Capital Group can actually do from Abu Dhabi. The firm, which announced its first Middle East office in the city in May, can now conduct trading, investment management and distribution activities inside the international financial centre, rather than serving the region from elsewhere. “Establishing a regulated presence in Abu Dhabi brings us closer to our clients and to the investment opportunities across the Middle East,” said Benno Klingenberg-Timm, head of the Abu Dhabi office. “From day one, we will have a meaningful presence, with on-the-ground investment, operational and client-facing capabilities,” he said.
New Mountain’s arrival is narrower in scope, and the firm says so itself. The Abu Dhabi office, led by Shehreyar Hameed as senior executive officer, exists to manage relationships with Gulf institutions. Its investment activity stays focused on middle-market companies in North America, in sectors the firm calls defensive growth. Hameed joined recently from Blackstone and previously worked at J.P. Morgan Asset Management and Goldman Sachs covering the region; he shares Gulf coverage with Patrick O’Dolan from the firm’s London office. Adam Weinstein, the firm’s president and chief operating officer, called the opening an important milestone reflecting a long-term commitment to the region.
What the two moves share is timing and a location. ADGM is the largest international financial centre in the Middle East and Africa by active licences, and asset managers that set up there in the first half of this year oversee more than $2.1 trillion globally. Eurazeo and Pantheon opened offices within the past two weeks, and New Mountain follows names such as Blue Owl Capital, Man Group, Barings and Bain Capital. Ahmed Al Zaabi, ADGM’s chairman, said Capital Group’s decision reflects the centre’s position for institutions seeking long-term opportunities in the region.
The open question for both firms is what a Gulf base converts into. A licence authorises activity; it does not guarantee mandates. For Capital Group, the test will be whether regional institutions allocate through the Abu Dhabi entity. For New Mountain, which has worked with Gulf investors for more than two decades without a local office, the office will show its value in fundraising and investor relations rather than in deal flow. Both firms’ next regional filings and any disclosed mandates will show whether the build-out continues at this pace.
Featured illustration is an AI-generated editorial image, not a photograph.
