Abu Dhabi draws global investment firms as secondary market deals hit record
Global asset managers and private equity firms are setting up offices in Abu Dhabi to take part in a fast-growing secondary market, where record deal volumes have been reported.
Abu Dhabi is increasingly becoming a destination for major international investment firms, not only a source of venture capital and private equity, according to a Bloomberg report. Several firms have expanded their presence in the emirate in recent months, with EQT, Pantheon and Eurazeo opening offices since mid-September, joining Ardian and HarbourVest Partners.
Secondary market dealings, in which existing private asset stakes are bought and sold, have grown rapidly as higher interest rates make asset sales and liquidity harder to achieve. Secondary deals reportedly reached a record $121 billion, and the sector is expected to reach $250 billion in value this year.
French firm Ardian raised $30 billion last year for what was its largest-ever secondary investment platform. It has partnered with the Abu Dhabi Investment Authority, which manages $1.1 trillion in assets, to launch a secondary real estate investment platform, and it also works with Mubadala Investment Company in the private assets sector.