Blackstone targets Dubai's $1 trillion wealth market as it looks to attract Gulf's richest investors
Blackstone Inc. is stepping up its expansion in the Middle East, opening a dedicated private wealth office in Dubai as the US alternative asset manager looks to tap the region's wealthy investors and family offices, Bloomberg reported.
The firm's top private wealth executives held their first-ever gathering in Dubai on Wednesday, pitching investment products, including private credit and infrastructure, to more than 100 high-net-worth individuals and representatives of platforms distributing private investments to wealthy clients and family offices.
The event, held at the Waldorf Astoria in the Dubai International Financial Centre (DIFC), coincided with the opening of Blackstone's new Dubai office. It is the firm's first dedicated private wealth office outside Zurich.
Speakers, according to the news outlet, included Farhad Karim, chief operating officer of Blackstone Private Wealth; Carlos Whitaker, president of BCRED, the firm's flagship private credit fund for individual investors; and Greg Blank, chief executive officer of BXINFRA, its infrastructure investment vehicle for retail investors.
Blackstone's expansion comes as Dubai strengthens its position as a global financial and wealth management hub, attracting international financial institutions, wealth managers and family offices despite the ongoing Iran war.
Family offices based in the DIFC alone control more than $1 trillion in assets, making the financial centre an important destination for firms seeking to attract wealthy investors.
"The UAE has built an extraordinary position as a global finance and investment hub and is becoming an increasingly important center for wealth management," Blackstone President and Chief Operating Officer Jon Gray said in an emailed statement, Bloomberg said.
Other global financial institutions, including JPMorgan Chase, Barclays and HSBC, have also been expanding their wealth management businesses in the Middle East despite the regional conflict, Bloomberg reported.
"What's happening in Dubai isn't cyclical. It's structural," Karim told Bloomberg, adding that money, talent, entrepreneurs and financial institutions were moving in the same direction, making Dubai "one of the world's great wealth capitals".
Blackstone's expansion in Dubai comes amid a broader shift in the alternative investment industry, with private capital firms increasingly targeting wealthy individuals and family offices as institutional fundraising slows.
The firm has been at the forefront of this trend. Its private wealth business manages $330 billion in assets, accounting for nearly a quarter of Blackstone's total assets under management of $1.4 trillion.
However, the expansion reportedly comes against the backdrop of growing pressure on the private credit industry. Blackstone is reportedly navigating challenges faced by several firms in the sector, as some investors seek to withdraw their capital amid concerns about exposure to software companies and the quality of credit portfolios.
Beyond wealth management, the Gulf has emerged as an important dealmaking destination for Blackstone.
Despite the Iran war, the firm has struck several deals in the UAE. These include a partnership with a Dubai-based firm to establish an aircraft-leasing venture and a $250 million commitment to a payments infrastructure platform in Abu Dhabi.
Blackstone has also joined other global firms in a $16 billion infrastructure partnership involving Kuwait's oil-export pipelines. The investment represents the largest foreign direct investment in Kuwait's history, Bloomberg reported.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.