Capital Group brings $3.6 trillion scale to Abu Dhabi’s investment hub

Capital Group, which manages $3.6 trillion in assets, is moving staff from North America, Europe and Asia to Abu Dhabi as it builds a base closer to Middle Eastern clients. The investment manager has secured a licence from the Financial Services Regulatory Authority of ADGM, Abu Dhabi’s international financial centre, according to The National — Business. The approval turns its regional expansion plans into a regulated presence.

The company said in a statement on Wednesday that the licence allows it to carry out trading, investment management and distribution activities within ADGM. That covers buying and selling investments, managing portfolios and offering investment products. It follows the company’s announcement in May that it planned to establish its first Middle East office in Abu Dhabi, supported by associates relocating from other regions.

A local team for a long-standing market

Benno Klingenberg-Timm, head of the Abu Dhabi office and head of institutional for Europe and Asia at Capital Group, said the new presence would bring the firm closer to both clients and investment opportunities. The Middle East is not a new market for the company: he said it had been active there for many years. The change is an on-the-ground operation with investment, operational and client-facing capabilities from the outset.

The expansion reflects Capital Group’s confidence in the Middle East’s long-term growth, said Benno Klingenberg-Timm.

The appeal extends beyond an office address. Abu Dhabi offers international money managers a base from which to expand across the region and work more closely with some of the world’s largest sovereign wealth funds—state-owned investment pools. Large family offices, which manage wealthy families’ assets, and other institutional partners also form part of that network. Capital Group’s licence gives it a platform to serve this market through regulated activities.

Global managers build an Abu Dhabi foothold

Capital Group joins a widening group of international investment firms choosing ADGM. The centre is the largest in the Middle East and Africa by number of active licences, according to the report, and has continued attracting global institutions despite the Iran war. Asset managers that established operations there in the first half of the year collectively oversee more than $2.1 trillion in global assets. That figure describes their worldwide businesses, not money invested in Abu Dhabi.

New York-based New Mountain Capital said on Tuesday that it was opening an ADGM office. Founded in 1999, the firm manages about $60 billion across private equity, credit and net lease investment strategies. President and chief operating officer Adam Weinstein said a local presence would help deepen years-old relationships with regional investors while supporting new partnerships.

The arrivals also include European asset manager Eurazeo, which opened an ADGM office last week and oversees €40 billion ($45.2 billion). Pantheon, a private markets firm investing outside public exchanges, opened its first Abu Dhabi office last week to address growing Gulf investor demand. Recent entrants also include Blue Owl Capital, Vista Equity Partners, Man Group, Barings, Bain Capital, Cantor and Adapt Investment Managers.

ADGM chairman Ahmed Al Zaabi said Capital Group’s decision underlined Abu Dhabi’s financial ecosystem and the centre’s growing role for institutions seeking long-term regional opportunities. The next development to watch is the build-out of Capital Group’s local team and activities: the licence is secured, and the company says investment, operational and client-service capabilities will be present from day one.