15-07-2025
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.
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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.
