Latest news with #FadiKhoury
Arabian Post
15-07-2025
- Business
- Arabian Post
Nuveen Poised for Twofold Growth in Middle East Assets
Nuveen, the $1.3 trillion global asset manager under the Teachers' Retirement System of America, forecasts its assets under management in the Middle East to double within three years. Since establishing its first regional office in Abu Dhabi's Global Market in September 2024, Nuveen has already grown its Middle Eastern portfolio to between $3 and $5 billion. Fadi Khoury, head of Middle East operations, identifies alternative credit as the firm's key growth pillar. Khoury told Zawya that Nuveen is enhancing its capabilities across private credit, energy infrastructure credit, and real estate debt, deliberately avoiding concentration in a single asset class. He emphasised that the firm has onboarded three regional institutional investors to its collateralised loan obligation strategies, signalling increasing sophistication among Gulf investors. Nuveen's energy infrastructure credit strategy has historically focused on US-based renewable projects, with emerging exposure in Europe. Khoury explained that the firm's Middle East infrastructure capabilities are nascent—not due to lack of opportunity, but pending team and platform expansion. Globally, about 70% of Nuveen's energy infrastructure credit is allocated to renewables and digital infrastructure tied to AI, electrification, and digital transformation. ADVERTISEMENT Opening an office in Abu Dhabi positioned Nuveen to tap into approximately $2 trillion in regional institutional capital—sovereign wealth funds, pension schemes, family offices and local institutions—which are steadily increasing private market allocations. Khoury, who has spent 18 years in the region, observed a notable shift over the past decade: institutional investors are diversifying from private equity into alternative credit, marking a significant strategic pivot. Nuveen has emphasised local partnerships, notably forming an alliance with a Gulf sovereign wealth fund to deploy alternative credit. The firm plans to replicate that model with other regional institutional investors, drawing on its unique dual role as both an asset manager and asset owner—leveraging TIAA's $350 billion general account to align closely with client interests. Globally, Nuveen's diversified investment platform spans public markets, private capital, real assets, infrastructure, and sustainable strategies—anchored in over 125 years of investment expertise. The expansion in the Middle East aligns with its broader strategy of global footprint growth, following the appointment of Khoury and two other senior executives in the region. Nuveen's entry into Abu Dhabi also mirrors a wider trend among global financial firms to embed in Gulf financial centres, attracted by deep sovereign wealth pools, regulatory appeal, and tax incentives. Nuveen was the second US asset manager with more than $1 trillion in AUM to launch a presence in ADGM in 2024—joining the likes of PGIM. Khoury highlighted significant momentum in the collateralised loan obligation sector, which has evolved from niche to mainstream among Middle Eastern investors. While specific figures remain confidential, he emphasised that regional investors are embracing greater investment sophistication. The firm's strategy in alternative credit encompasses three core strands. Private credit—especially direct lending to middle-market firms—forms the backbone. Energy infrastructure credit is the second pillar, intended to support the Middle East's energy transition and digital infrastructure build-out. The third, real estate debt and asset‑backed lending, remains a smaller but strategically important component. Nuveen's global energy infrastructure credit team, led by Don Dimitrievich and supported by 70 specialists, manages a portfolio with approximately $34 billion in infrastructure credit and equity, targeting a low‑carbon transition. Experience from Europe, the US and Asia-Pacific is expected to be leveraged as Nuveen deepens its regional presence. Local market demand for private capital is being driven by Gulf investors' growing emphasis on yield, diversification, and ESG alignment. Nuveen's integration of ESG factors and UN Sustainable Development Goals into its infrastructure strategies aligns comfortably with regional mandates around energy transition and digital transformation.
Zawya
14-07-2025
- Business
- Zawya
Global asset manager Nuveen expects to grow Middle East AUM up to $10bln
The US-based investment manager Nuveen, which opened its first Middle East office at Abu Dhabi Global Market (ADGM) last year and currently manages between $3 billion and $5 billion in the region, expects its assets under management (AUM) in the region to double over the next three years. Nuveen is a $1.3 trillion asset management firm owned by the US teachers pension fund, TIAA, and is active in both private and public markets. In an interview with Zawya, Fadi Khoury, Head of Middle East at Nuveen, said alternative credit is a key area of focus at Nuveen. Rather than concentrating on a single asset class, the investment company is building capabilities across three main strategies: private credit, energy infrastructure credit, and real estate debt. Of these, private credit—specifically direct lending—is key, followed by energy infrastructure credit and collateralized loan obligations (CLOs) Real estate debt and asset-backed lending represent a smaller, "but still important, part of our platform", he said. Partnering for growth Nuveen has initiated a partnership with a GCC-based sovereign wealth fund that is primarily focused on alternative credit. It is aiming to build similar relationships with regional institutional investors. 'We have the capability and the know-how, we'll definitely be looking to replicate that with other sovereign wealth funds.' 'As part of TIAA, Nuveen manages a $350 billion general account, which gives us an understanding of the needs of asset owners,' said Khoury. 'What sets Nuveen apart is our dual identity: we are both an asset manager and an asset owner.' This alignment, he said, allows them to engage with partners not just as managers of capital, but as peers who share similar long-term objectives. Setting up in Abu Dhabi's financial centre gives the investment manager access to around $2 trillion of funds held by sovereign wealth funds, pension funds, family offices, and key financial institutions. According to Khoury, who has been in the region for 18 years, over the past decade institutional investors in the Middle East have been steadily increasing their allocations to private markets. 'Initially, private equity dominated these allocations. However, over the last 5–10 years, and especially in the past five, alternative credit has emerged as a core allocation.' Nuveen has onboarded three institutional investors into its collateralised loan obligation (CLO) strategies. 'While I can't share specific figures due to confidentiality, I can say that interest is growing. CLOs were once considered niche, but they are becoming more mainstream as regional investors become more sophisticated,' he said. At the moment, Nuveen's expertise in energy infrastructure credit has been primarily focused on projects in the US, with some exposure in Europe. The company hasn't yet extended this strategy to the Middle East, 'not due to a lack of opportunity, but because our current platform and teams are not yet established in the region for this specific area', he added. Within Nuveen's current strategy, approximately 70% of energy infrastructure credit supports renewable energy and digital infrastructure—including projects tied to AI, electrification, and digital transformation. 'While we're not yet active in this space in the Middle East, we see strong potential as regional projects grow in scale and complexity,' Khoury said. (Writing by Brinda Darasha; editing by Seban Scaria)
