A shift among GCC wealth funds — including the UAE’s — from being passive investors towards setting demands in exchange for their capital is the focus of a new feature on Bloomberg. Asset managers are being urged to establish a stronger presence in the Gulf region, with funds demanding that they bring more of their operations to the region.

With the main incentive for investing in US funds being economic diversification, GCC sovereign wealth funds are focusing on strategic partnerships with managers willing to go along with the concessions, such as cutting fees and changing fee structures.

Mubadala has “sent shocks through wall street” with a series of high-profile investments, including a USD 700 mn investment in private equity firm Aquarian Holdings. Its investment arm — the first set up by a GCC fund — is now exploring plans to divest at least part of its investment to other firms. New York-based Aquarian raised some USD 1.5 bn from Mubadala and other investors in June.

Tags: