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

Golub Capital BDC

09/12/2024 12:35

(Adds comments from CEO throughout)
    By Federico Maccioni
       ABU DHABI, Dec 9 (Reuters) - U.S.-listed direct lender
and private credit manager Golub Capital  GBDC.O  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. 

 (Reporting by Federico Maccioni, editing by Kirsten Donovan)
 ((Federico.maccioni@thomsonreuters.com; +971 527370852;))