By Mindaugas Suklevicius, Founder and Fund Manager at HF Quarters
Private markets have become multipolar. Gulf, European, and Asian limited partners (LPs) are supplying capital and resetting structures. The emergence of multiple global hubs is driving new growth opportunities for private markets.
In the Gulf, Sovereign wealth funds (SWFs) and large family offices are expanding their allocations. Gulf SWFs lead global growth, with an estimated AUM of USD 6 trillion or 40% of the global value. Hubs in the region also play a significant role. ADGM brands itself as a premier destination for capital and financing with a trillion dollars in assets and private wealth at the heart of the MENA region and the East/West corridor, positioning Abu Dhabi as a gateway for deployment and domiciliation. The DIFC frames Dubai as a platform with frameworks that enable efficient cross-border investment in private assets.
European institutions remain anchor LPs seeking yield, diversification, and rigorous reporting. Additionally, institutional investors in Europe are boosting allocations to private credit. When it comes to domiciliation, Luxembourg’s cross-border engine remains at the forefront. ALFI reports cross-border assets reached EUR 7 trillion, with Luxembourg accounting for nearly half of global cross-border AUM.
Capital corridors provide opportunities, but often also set the terms of engagement. Leaders who can read those corridors as distinct operating systems can shape deals that scale across them, rather than letting geography dictate strategy.