Golub Capital Expands into Abu Dhabi

By Federico Maccioni

ABU DHABI (Reuters) – U.S.-listed direct lender and private credit manager Golub Capital is set to open an office in the UAE's capital, Abu Dhabi, as part of its expansion in the region. This move aligns with many firms seeking to deepen connections with local wealth funds.

As of October 1, Golub manages over $70 billion in capital and has received preliminary approval for a license to operate from the Abu Dhabi Global Market (ADGM), the emirate’s financial hub. The firm has also appointed Naser Almutairi as managing director for the Middle East.

CEO Lawrence Golub expressed enthusiasm for expanding client services, noting the company's long-standing presence in the region. The new office is expected to launch in January, though the number of employees has yet to be disclosed.

Key factors in the decision to expand included a growing number of sovereign wealth funds, a favorable regulatory climate, and an increase in high net worth individuals in the area.

This announcement coincided with Abu Dhabi Finance Week, as financiers gathered in the capital. The emirate, which holds 90% of the UAE's oil reserves, is making strides to diversify its economy, with ADGM aiming to become a global financial hub. While ADGM currently trails behind Dubai's DIFC, it reported assets under management of $157.2 billion by the end of June, attracting notable firms including the family office of billionaire Ray Dalio.

The private credit sector, projected to grow from $1.5 trillion in 2023 to $2.6 trillion by 2029, is becoming increasingly appealing amidst stricter regulations affecting traditional lenders. Golub Capital specializes in the middle and upper middle market and is considering further investments in the Middle East, with plans to apply for a license in Saudi Arabia, signaling strong growth potential in the region.