By Federico Maccioni
ABU DHABI (Reuters) – U.S.-listed direct lender and personal credit score supervisor Golub Capital is opening an workplace within the UAE’s capital Abu Dhabi, it stated on Monday, becoming a member of dozens of different corporations seeking to develop their enterprise within the area and deepen ties with its wealth funds.
Golub, which had greater than $70 billion of capital beneath administration as of Oct. 1, has obtained preliminary approval for a licence to function out of the Abu Dhabi World Market (ADGM), the emirate’s monetary centre, it stated in a press release, including that it had additionally appointed Naser Almutairi as managing director for the Center East.
The announcement got here as international and regional financiers gathered within the UAE’s capital metropolis for the primary day of the Abu Dhabi Finance Week annual convention.
The emirate, which holds 90% of the UAE’s oil reserves, has accelerated efforts to diversify its economic system with ADGM striving to change into a worldwide hub.
Though it trails neighbouring Dubai’s DIFC monetary centre, ADGM’s belongings beneath administration reached $157.2 billion to the top of June as corporations together with the household workplace of billionaire Ray Dalio, hedge fund Brevan Howard and the world’s largest asset supervisor, BlackRock (NYSE:), flocked to the hub.
It’s also attracting corporations lively in personal credit score, which has grown quickly lately as stricter rules make it costlier for conventional lenders to finance riskier loans.
The asset class is anticipated to develop to $2.6 trillion by 2029 from $1.5 trillion on the finish of final yr, in line with Preqin information.
BlackRock stated final week that it might make investments about $12 billion to purchase personal credit score agency HPS Funding Companions.
Gulf sovereign wealth funds are additionally increasing within the personal credit score house, together with Abu Dhabi’s $330 billion Mubadala, which has solid partnerships with the likes of Apollo and Goldman Sachs lately and final week stated it might purchase a 42% stake in U.S. credit score asset supervisor Silver Rock Monetary.
