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ADFG
IndustryFinancial Services; Investment Management
Founded2011
Headquarters
Abu Dhabi
,
United Arab Emirates
Key people
Jassim Alseddiqi, CEO
ServicesAlternative Investments, Asset Management, Debt Investments and Real Estate development
AUMUS $6 billion (2018)[1]
SubsidiariesNorthacre, Integrated Alternative Finance, Etihad REIT, ADCORP
Websitewww.adfg.ae

Abu Dhabi Financial Group (ADFG) is a global investment management group, headquartered in Abu Dhabi.[2]

History

Founded in 2011, ADFG is headquartered in Abu Dhabi’s Abu Dhabi Global Markets (ADGM), with offices in Dubai, London, Eastern Europe, Saudi Arabia[2] and Egypt.[2] Since 2011, the company has evolved and expanded into an integrated financial services platform under the ADFG Group, branching out to cover four key areas:[3] public markets, private markets, debt investments and real estate. The company is also involved in technology investments.[4]

By 2018, ADFG’s assets under management had grown to more than USD 6 billion.[5][6] Since its establishment, ADFG has demonstrated a pioneering track record when it formed the Middle East's first dedicated secondaries-focused private equity fund – the ADCM Secondary Private Equity Fund - targeted towards acquiring interests in MENA-based funds.[7]

A year later, in 2012, ADFG launched the listed private equity fund Qannas Investment Limited through a flotation on London Stock Exchange’s Alternative Investment Market. This was the first ‘cash shell’ arrangement by a Middle Eastern company.[8]

Private Markets

ADFG’s investments in private equity are focused primarily on the GCC but it also seeks opportunities in the wider MENA region and beyond. Typical ticket size is between $50 million and $300 million,[3] usually targeting an Internal Rate of Return of 20 percent or more. Key sectors for investment include financial services and real estate. In November 2016, ADFG completed the acquisition of a 48.36 percent stake in Dubai-based financial services firm Shuaa Capital from Dubai Group. Shuaa Capital returned to profit in 2017, recording its highest full-year profit since 2007.[9] ADFG also founded ADCorp, the first Islamic financial institution based in Abu Dhabi Global Market with a funding round raising over $101m in 2018.

Public Markets

ADFG invests in public markets across equities and fixed income and participates in both primary offerings and secondary markets. Examples of its investments include stakes in Bahraini investment bank, GFH Financial Group, and Sharjah-based energy group, Dana Gas.[3]

Technology

In April 2018, ADFG took a strategic stake in 500 Startups, the Silicon Valley venture capital fund to complement its existing technology initiatives. At the time, ADFG said it would be injecting substantial capital to accelerate the growth of 500’s key initiatives, expand into new markets, and anchor future global funds.[10]

Debt investments

ADFG’s debt platform, Integrated Alternative Finance (IAF),[11] operates primarily in the UAE and London markets. With strong links to financial institutions and alternative lenders, including ADFG itself, the platform has access to capital that can be structured to specific corporate or project circumstances. In addition, the platform also provides on-going monitoring and management of debt investments on behalf of investors. IAF provides alternative financing and structuring solutions to asset owners and developers for acquisition, restructuring, refinancing or development projects. Regulated by the Dubai Financial Services Authority, IAF’s primary focus is in the real estate sector and is particularly targeting expansion in Saudi Arabia, the UAE and Egypt.[3] To date, IAF has arranged finance totaling approximately US$3 billion, with a blended overall return of 15%.[3]

Real Estate

ADFG’s real estate activities range from developing greenfield projects to investing in income-producing assets and asset management. The portfolio includes residential, commercial, logistics, retail and hospitality assets across the Middle East, UK and Eastern Europe.

UK

ADFG owns[12] Northacre, a developer of luxury property in central London. Northacre has designed, developed and marketed over £2.2 billion of prime residential developments in London[13] over its 25-year history, with projects including The Broadway (formerly New Scotland Yard), No 1. Palace Street, Lucan Place and the Lancasters in Hyde Park.

In 2014, ADFG bought New Scotland Yard, the former Metropolitan Police headquarters, for £370 million in December 2014, and subsequently submitted plans to demolish the 1960s block in Victoria and build luxury apartments, whilst retaining the familiar rotating sign.

In February 2016, the redevelopment proposal, consisting of six residential-led buildings ranging from 14 to 20 storeys, was approved by Westminster City Council. In total, the development rebranded 'The Broadway' will consist of 268[14] super prime apartments. Work on the development commenced in November 2016 with the new properties scheduled to be completed in 2021.

In November 2015, the CEO of ADFG, Jassim Alseddiqi, stated that there would be "major shopping" and that 2016 would be an "important year" for ADFG.

In 2017, Niccolò Barattieri di San Pietro, Northacre’s chief executive, commented[15] that “London will continue to hold its dominant and stable position as the No 1 city for investors” in real estate. ADFG also owns No.1 Palace Street,[16] situated adjacent to Buckingham Palace which will comprise 72 luxury apartments, restaurant and health and fitness facilities within its 300,000+ square feet once completed.

Eastern Europe

In September 2015, ADFG officially opened the landmark commercial and residential investment project in Montenegro, The Capital Plaza. Located in the heart of Podgorica, Montenegro’s capital city, The Capital Plaza is the largest mixed-use real estate development in the country, occupying over 100,000 square metres of prime retail, business, hospitality and residential space.

The opening ceremony was attended by a large number of high-ranking officials, dignitaries, and diplomats, including H.E. Milo Đukanović, Prime Minister of Montenegro; H.E. Abdulhamid Saeed, Managing Director of Capital Investment; and H.E. Hafsa Al Ulama, UAE Ambassador to Montenegro.[17]

Middle East

Etihad REIT is a UAE-based Sharia-compliant Real Estate Investment Trust established and incorporated under the laws of ADGM. Launched in 2016, it has a mixed-use portfolio of assets across the UAE. In 2018, ADFG entered into a Memorandum of Understanding with Jabal Omar Development Company,[2] Saudi Arabia’s largest publicly-listed real estate company, to explore opportunities for collaboration and partnerships associated with new real estate development opportunities within the holy city of Makkah and throughout the Kingdom. Through its real estate platforms including Northacre and SHUAA Saudi, ADFG will provide development management, design and development, project management and asset management. Furthermore, ADFG will support the developments through its various financing and structuring platforms.

See also

References

  1. ^ "Abu Dhabi Financial Group sets up headquarters at Abu Dhabi Global Market". Gulf News. 14 January 2018. Retrieved 27 May 2018.
  2. ^ a b c d "ADFG enters into MoU with JODC on real estate projects". Saudigazette. 2 May 2018.
  3. ^ a b c d e "Exclusive: ADFG eyes private equity deals in Latin America, to launch debt fund in 2018". The National.
  4. ^ https://www.bloomberg.com/news/videos/2018-04-05/adfg-ceo-very-focused-on-gcc-region-at-the-moment-video
  5. ^ "ADFG buys stake in 500 Startups". gulfnews.com.
  6. ^ Halligan, Neil (3 October 2014). "ADFG eyes growth, potential acquisitions in 2016". Arabian Business. Retrieved 5 March 2016.
  7. ^ Morby, Aaron (23 March 2011). "Abu Dhabi Capital Management voted UAE's top private equity fund". Retrieved 18 August 2016.
  8. ^ Halligan, Neil (3 October 2014). "Fast and Furious: Jassim Alseddiqi". Retrieved 18 August 2016.
  9. ^ "Shuaa expects 2018 profit to top Dh100m". gulfnews.com.
  10. ^ "UAE's ADFG acquires strategic stake in Silicon Valley-based 500 Startups". 3 April 2018 – via www.reuters.com.
  11. ^ "Abu Dhabi's ADFG arranges financing for Palm Jumeirah project". ArabianBusiness.com.
  12. ^ "New wave of Asian buyers to rival Arabs in London luxury property market". Arab News. 11 November 2017.
  13. ^ "Saudi developer Jabal Omar seals ADFG partnership deal". www.tradearabia.com.
  14. ^ "The New Scotland Yard makes way for Broadway". gulfnews.com.
  15. ^ "Northacre says investors are in for the long haul on luxury London property". The National.
  16. ^ "ADFG CEO: Looking beyond the Brexit gloom". Gulf Business. 13 August 2016.
  17. ^ Barnard, Lucy (15 September 2015). "Abu Dhabi investors expand in Montenegro as Capital Plaza opens". The National. Retrieved 7 August 2016.
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