The Scoop
Gemcorp is raising a $1 billion fund out of its Abu Dhabi office to back private credit deals in Africa as the London-based firm looks to tap into the UAE’s standing as the continent’s top foreign investor.
“There is a huge amount of capital looking” for Africa deals in Abu Dhabi, Gemcorp Partner Asad Hajiyev told Semafor in an interview. The firm plans to invest in deals ranging from $20 million to $100 million across sectors like energy, agriculture, and commodities. The sum would double Gemcorp’s target for assets under management in the Gulf, and fundraising could take several years, Hajiyev said.
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Founded 11 years ago by former Goldman Sachs partner Atanas Bostandjiev, Gemcorp has invested more than $8 billion in some of the world’s riskiest markets.
It joined the rush of foreign investors setting up in Abu Dhabi’s financial hub ADGM last year, with plans to hire 15 people within its first year. That hiring spree has been delayed as Gemcorp focuses on fundraising, Hajiyev said. Currently, only three investment professionals and one investor relations executive are working in the UAE, he said, and the firm will expand as its assets grow.
Gemcorp isn’t licensed in Saudi Arabia but is continuing to raise a $1 billion fund — first announced in 2023 — in partnership with the kingdom’s Ministry of Investment. It’s targeting deals in the kingdom across mining and rare earth minerals, technology, and social infrastructure like schools, hospitals, and workers’ accommodations. The firm is currently evaluating around two dozen transactions in the Gulf, with the majority in Saudi Arabia, Hajiyev said.
Kelsey’s view
Gemcorp’s decision to split offices and funds across three Gulf cities is a product of the competition between Abu Dhabi, Dubai, and Riyadh to position themselves as global financial hubs.
Abu Dhabi — the self-proclaimed “capital of capital” with over $1.7 trillion in state-backed assets under management — is framing itself as the place to fundraise and broker international deals, with its sovereign wealth funds among the world’s most active investors.
Dubai (where Gemcorp has stationed its lone investor relations employee) meanwhile, pitches itself as a playground for high net worth individuals and family offices. Riyadh leans on its larger economy and aims to attract foreign investors to help transform sectors including mining, energy, real estate, and tourism (to name a few).
Notable
- Gemcorp cut its ties with Russia before its invasion of Ukraine, shifting its focus to the Middle East, the Financial Times reported.
- Abu Dhabi’s ADGM is 97% leased, but many desks remain empty, highlighting the difficulty of building a new financial center, Bloomberg reported.