Capital Group secures ADGM licence to expand Middle East operations

Capital Group, a $3.6 trillion asset manager, has obtained a regulated investment manager licence from Abu Dhabi’s ADGM to bolster its foothold in the Middle East. The firm announced plans in May to open its first Middle East office in Abu Dhabi, relocating staff from North America, Europe, and Asia to serve clients in the region.

With this licence, Capital Group can now engage in trading, investment management, and distribution activities within Abu Dhabi’s financial hub, according to a statement released on Wednesday. Benno Klingenberg-Timm, head of ADGM and institutional head for Europe and Asia at Capital Group, stated that the move brings the firm closer to its clients and investment prospects across the Middle East, a region where Capital Group has been active for years.

He emphasized the company's commitment to establishing a meaningful presence in Abu Dhabi, complete with on-the-ground investments, operational capabilities, and client-facing services. This expansion underscores Capital Group's confidence in the region's long-term growth prospects. ADGM, the Middle East and Africa's largest international financial centre by active licences, has continued to attract global institutions despite geopolitical tensions.

New Mountain Capital, an alternative investment firm based in New York, announced on Tuesday its plans to open an office in ADGM to strengthen its regional presence. Established in 1999, New Mountain manages approximately $60 billion across private equity, credit, and net lease investment strategies. Adam Weinstein, president and chief operating officer, said the company aims to deepen relationships with leading regional investors while forging new partnerships.

In May, Eurazeo, a European asset manager with €40 billion in assets under management, opened an ADGM office. Pantheon, a global private markets firm, recently opened its first Abu Dhabi office to capitalise on growing demand from investors across the Gulf. The UAE capital has attracted numerous high-profile companies in recent months, including 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.

ADGM’s growing number of asset managers managing over $2.1 trillion in global assets under management reflects the strength of Abu Dhabi’s financial ecosystem and ADGM's position as a leading international financial centre for global institutions seeking long-term opportunities in the region, according to Ahmed Al Zaabi, chairman of ADGM.