US asset manager Nuveen is charting an ambitious course to significantly expand its regional portfolio. With aspirations to grow its assets under management in the Middle East to as much as $30 billion within the next five years, Nuveen’s CEO, Bill Huffman, expressed optimism about the region’s investment potential.
Nuveen, headquartered in Chicago and managing a whopping $1.3 trillion globally, is no stranger to rapid growth. The company previously turned its fortunes in Japan from $2 billion to over $15 billion in a few short years. “We believe we can replicate that success here,” Huffman shared during an interview in Abu Dhabi, underscoring the potential for extraordinary growth across various asset classes in the region.
The Middle East, particularly the GCC countries rich in oil reserves, presents a fertile ground for Nuveen’s expansion plans. With a current regional portfolio of $3 billion, Huffman sees a clear path to increase this to $30 billion, benefiting from the region’s affluent investor base and economic momentum. The firm’s strategy hinges on collaborating with sovereign wealth funds and family offices—a hallmark of the Middle East’s financial landscape.
Nuveen’s recent establishment of an office in Abu Dhabi’s ADGM, one of the fastest-growing financial hubs in the region, signals a commitment to deepening its presence. This strategic location will anchor Nuveen’s operations as it seeks to broaden its client base, mirroring the steps of fellow trillion-dollar asset managers like PGIM and BlackRock, who have also recognized the UAE’s financial allure.
The UAE is witnessing a burgeoning population of affluent investors, drawing global asset managers to its shores. According to UBS’s Billionaire Ambitions report, the aggregate wealth of UAE billionaires surged by 39.5% to $138.7 billion this year, with the region attracting significant billionaire wealth post-COVID due to its superior healthcare, education, and business environment.
During the recent Abu Dhabi Finance Week, eight global institutions announced plans to establish bases in the city, collectively managing $635 billion in assets. This wave of entrants is testament to the UAE’s rapidly advancing status as a financial hub, with ADGM reporting a 215% annual increase in assets under management by the end of Q3.
Nuveen’s strategy includes exploring co-investment opportunities with state investment arms, a model it has successfully executed elsewhere, offering clients a diversified portfolio spanning credit, public securities, and alternative investments. This aligns with a regional appetite for a broad mix of asset classes aimed at achieving higher returns.
In a competitive landscape, Nuveen leverages its strengths as one of the largest private credit firms globally and a top-five real estate manager. This breadth of capability positions Nuveen as a formidable player in the Middle East, poised to bring substantial investment opportunities to local and international investors alike.
In the coming years, Nuveen plans to expand its team and potentially establish an office in Saudi Arabia, further cementing its commitment to the region. With a clear vision and robust strategy, Nuveen is set on transforming its Middle East operations into a cornerstone of its global portfolio—heralding a new era of investment growth in the region.
