‘Capital of Capital’: Abu Dhabi draws global investment giants as secondary market deals hit record $121 billion

Abu Dhabi continues to consolidate its position as the global “Capital of Capital”. The emirate is no longer simply a major source of venture capital and private equity, but has also become a key destination for leading global asset managers and private equity firms seeking to capitalise on opportunities in the secondary market.

This growing economic trend comes amid an urgent need in global markets to accelerate liquidity generation and facilitate the reallocation of large investment portfolios, against a backdrop of fluctuating global interest rates.

According to a report by Bloomberg, Abu Dhabi has emerged as an attractive destination for major investment firms operating in the secondary market, with an expansion in offices and partnerships, market growth and an increasing focus on accelerating liquidity and portfolio rebalancing in recent months.

The emirate is further strengthening its position as a global centre for private market investment, as a new wave of international investment firms establishes a presence in Abu Dhabi. These firms are seeking to expand partnerships with sovereign wealth funds, participate in their investments and acquire stakes in companies held within their portfolios, according to Bloomberg.

The agency reported that this trend is particularly evident in the secondary market for private assets, which is experiencing rapid growth, with the sector 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 market.

Ardian’s deal-making activity provides one of the clearest examples of Abu Dhabi’s growing influence in this sector. Last year, the company raised $30 billion for what was the largest-ever secondary investment platform.

Secondary transactions are becoming increasingly important as higher interest rates have made asset sales and liquidity realisation more challenging. They also offer Gulf sovereign wealth funds an opportunity to rebalance their investments and unlock capital for new opportunities as their private market portfolios continue to expand.

Yassine Zarrouk, Managing Director and Co-Head of Ardian Abu Dhabi, told Bloomberg in an interview that the scale of the firm’s operations makes it a natural partner for large and complex transactions, particularly in providing liquidity solutions to 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 days of the war with Iran.

The firm also maintains 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.

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 substantial support 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 a range of structures, including co-investments and tailored solutions designed around their specific requirements. He noted that having a local presence facilitates communication and discussions with investors.

A direct regional presence also gives global investment firms greater access to regional investors and a deeper understanding of their investment portfolios and liquidity requirements.

Edward Holdsworth, Managing Director on HarbourVest’s secondary investment team, said these relationships could lead to asset-sale transactions aimed at rebalancing portfolios, or to partnerships involving co-investment in secondary market deals.

Secondary transactions involving private assets reached a record $121 billion in the first half of 2026, according to Evercore, prompting Abu Dhabi’s sovereign wealth funds to strengthen their positions to capitalise on the market’s expansion.

In this context, ADIA is recalibrating its private equity investment strategy, while the Abu Dhabi Investment Council (ADIC) plans to deploy up to $10 billion in investments over the next three years.

Meanwhile, PGIM, which manages $1.5 trillion in assets, has appointed Lucas Radael to head 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 turning to secondary transactions to manage their growing private market portfolios.

The growing momentum behind Abu Dhabi’s secondary investment market can be attributed to a combination of structural and financial factors:

1. Accelerating liquidity

The global private equity sector is experiencing a slowdown in traditional exit routes, particularly through initial public offerings (IPOs), compared with previous years. This has prompted institutional investors to increasingly turn to secondary markets to sell stakes in their investments and unlock liquidity.

2. Portfolio rebalancing

Sovereign wealth funds and major financial institutions are seeking to adjust the strategic allocation of their investments across sectors such as technology, artificial intelligence, real estate and private equity. Buying and selling secondary stakes provides them with greater flexibility to rebalance their portfolios in line with changing investment priorities.

3. Regulatory flexibility at Abu Dhabi Global Market (ADGM)

ADGM’s regulatory framework, based on English common law, provides legal certainty, investor protection and the flexibility needed to structure and execute complex transactions efficiently. This has helped create an attractive environment for sophisticated investment deals and further strengthened Abu Dhabi’s appeal as a global financial and investment hub.