US private credit firm Golub Capital to set up base in Abu Dhabi

By Federico Maccioni

ABU DHABI (Reuters) -U.S.-listed direct lender and private credit manager Golub Capital is opening an office in the UAE's capital Abu Dhabi, it said on Monday, joining dozens of other firms looking to grow their business in the region and deepen ties with its wealth funds.

Golub, which had more than $70 billion of capital under management as of Oct. 1, has received preliminary approval for a licence to operate out of the Abu Dhabi Global Market (ADGM), the emirate's financial centre, it said in a statement, adding that it had also appointed Naser Almutairi as managing director for the Middle East.

"We've had clients in the region for over a decade...We are eager to expand our business and to expand our client service," CEO Lawrence Golub told Reuters in an interview. He said the office is expected to open in January but declined to say how many staff it would have.

The presence of sovereign wealth funds, an attractive regulatory environment and an increasing number of high net worth individuals were among the factors influencing the decision, he said.

The announcement came as global and regional financiers gathered in the UAE's capital city for the first day of the Abu Dhabi Finance Week annual conference.

The emirate, which holds 90% of the UAE's oil reserves, has accelerated efforts to diversify its economy with ADGM striving to become a global hub.

Although it trails neighbouring Dubai's DIFC financial centre, ADGM's assets under management reached $157.2 billion by the end of June with firms including the family office of billionaire Ray Dalio and hedge fund Brevan Howard.

It is also attracting firms active in private credit, an asset class expected to grow to $2.6 trillion by 2029 from $1.5 trillion at the end of 2023, according to Preqin data, as stricter regulations make it more expensive for traditional lenders to finance riskier loans.

Golub, which focuses on middle and upper middle market companies, is planning further investment activities in the Middle East, the CEO said, adding that it was "very seriously" considering applying for a licence in Saudi Arabia, where it saw "big potential", although this would not happen next year.

Source: Investing.com