Global Investment Giants Flock to Abu Dhabi as Secondary Market Deals Reach Record Highs.
Abu Dhabi continues to strengthen its position as the global “Capital of Capital”. The emirate is no longer just a major source of venture capital and private equity, but is also emerging as a key destination for leading global asset managers and private equity firms seeking opportunities in the secondary market.
This growing trend comes as global markets face increasing pressure to generate liquidity and facilitate the reallocation of large investment portfolios amid fluctuating interest rates.
According to Bloomberg, Abu Dhabi has become an increasingly attractive destination for major players in the secondary market, with investment firms expanding their local offices and partnerships as they seek to accelerate liquidity generation and rebalance portfolios.
The emirate is further consolidating its role as a global centre for private market investment, with a new wave of international firms establishing a presence in Abu Dhabi. These firms are looking to deepen partnerships with sovereign wealth funds, participate in their investments and acquire stakes in companies held in their portfolios, Bloomberg reported.
The trend is particularly evident in the secondary market for private assets, which is expanding rapidly. The sector is expected to reach $250 billion in value this year.
Since mid-September, EQT, Pantheon and Eurazeo have opened offices in Abu Dhabi, joining Ardian and HarbourVest Partners, which had already established a presence in the emirate.
Abu Dhabi’s growing investment clout
Ardian’s deal-making activity offers an example of Abu Dhabi’s growing influence in the sector. Last year, the company raised $30 billion for what was then the largest-ever secondary investment platform.
Secondary transactions are becoming increasingly important as higher interest rates make asset sales and liquidity generation more challenging. They also give Gulf sovereign wealth funds an opportunity to rebalance their investments and release capital for new opportunities as their private market portfolios expand.
Yassine Zarrouk, Managing Director and Co-Head of Ardian Abu Dhabi, told Bloomberg that the scale of the firm’s operations makes it a natural partner for large and complex transactions, particularly those involving liquidity solutions for local investors.
Ardian has strengthened its relationship with the Abu Dhabi Investment Authority (ADIA), which manages $1.1 trillion in assets, through a partnership to launch a secondary real estate investment platform during the early stages of the war with Iran.
The firm also has partnerships with Mubadala Investment Company in the private assets sector and has continued to expand its Abu Dhabi investment team since opening its office in the emirate in 2023.
$6 billion raised by Pantheon
The momentum has extended to other investment firms. Just days after opening its Abu Dhabi office in late September, Pantheon announced that its latest flagship global private equity secondaries fund had exceeded its target, securing $6 billion in investment commitments, with significant backing from new investors in the Middle East.
Firas Mallah, Managing Director and Head of the Middle East at Pantheon, said the firm works with investors through various structures, including co-investments and tailored solutions designed to meet their specific requirements. He added that having a local presence makes communication and discussions with investors easier.
A direct regional presence also gives global investment firms greater access to investors in the region, along with a better understanding of their portfolios and liquidity requirements.
Edward Holdsworth, Managing Director on HarbourVest’s secondary investment team, said these relationships could lead to asset-sale transactions to rebalance portfolios, as well as partnerships involving co-investments in secondary market deals.
$121 billion in deals in the first half of 2026
Secondary transactions involving private assets reached a record $121 billion in the first half of 2026, according to Evercore. The growth has prompted Abu Dhabi’s sovereign wealth funds to strengthen their positions to capitalise on the expanding market.
Against this backdrop, the Abu Dhabi Investment Authority (ADIA) is recalibrating its private equity investment strategy, while the Abu Dhabi Investment Council (ADIC) plans to deploy up to $10 billion over the next three years.
Meanwhile, PGIM, which manages $1.5 trillion in assets, has appointed Lucas Radael to lead its Middle East secondaries business, with Abu Dhabi as his base.
Mohamed Abdel-Malek, Head of PGIM’s Middle East business, said regional institutions are increasingly using secondary transactions to manage their growing private market portfolios.
Drivers of change: Why Abu Dhabi, and why now?
Abu Dhabi’s growing secondary investment market is being driven by a combination of structural and financial factors:
1. Accelerating liquidity
The global private equity sector is facing a slowdown in traditional exit routes, particularly initial public offerings (IPOs), compared with previous years. This has encouraged institutional investors to turn increasingly to secondary markets to sell stakes in their investments and unlock capital.
2. Portfolio rebalancing
Sovereign wealth funds and major financial institutions are looking to adjust the allocation of their investments across sectors such as technology, artificial intelligence, real estate and private equity. Buying and selling secondary stakes gives them greater flexibility to rebalance portfolios in line with changing investment priorities.
3. Regulatory flexibility at Abu Dhabi Global Market (ADGM)
ADGM’s regulatory framework, which is based on English common law, offers legal certainty, investor protection and the flexibility to structure and execute complex transactions efficiently. This has helped establish an environment conducive to sophisticated investment deals, further enhancing Abu Dhabi’s appeal as a global financial and investment hub.
