Abu Dhabi Wealth Fund Closes London Office
November 09 2015 - 11:50AM
Dow Jones News
LONDON—One of the world's most powerful sovereign wealth funds
is bucking the trend towards global expansion among its peers by
shutting its office here.
The London office of the Abu Dhabi Investment Authority, it's
only international hub, is closing down after more than 20
years.
"This has no impact on our investments in, and commitment to,
the U.K., which will continue as before," ADIA spokesman Erik
Portanger said.
The fund doesn't disclose its total assets, which are estimated
to be in the hundreds of billions of dollars. In the U.K., ADIA
owns stakes in the operator of Gatwick Airport, water utility
Thames Water, train-leasing company Angel Trains and hotels
including the high-end Lanesborough in London.
ADIA declined to give a reason for the closure of the office.
Scrutiny of sovereign wealth funds from oil-rich nations is
increasing as oil prices decline, potentially reducing available
resources for the funds. ADIA was created in 1976 and invests in
equities, bonds, private equity, infrastructure and real estate. It
has 1,650 staff from 60 nations according to its 2014 annual
report.
Sovereign-wealth funds that are expanding into new territories
include the Qatar Investment Authority, which opened a New York
office in September and pledged to invest $35 billion in the U.S.
in five years. Norway's sovereign-wealth fund opened an office in
Tokyo in October. Singapore's Temasek Holdings Pte. Ltd. opened
offices in London and New York last year. China Investment Corp.
opened in Toronto in 2011.
In recent years ADIA has been hiring more in-house money
managers to avoid relying on external asset management firms—a
trend at some of the largest managers of national wealth from
Norway to Singapore. ADIA managed 35% of its money in-house in
2014, compared with 25% in the previous year.
The Abu Dhabi fund is also participating in more corporate
takeovers, including purchases this year of German roadside
services company Autobahn Tank & Rast GmbH and
Netherlands-based car-leasing company LeasePlan Corporation NV.
The closure of the London office was first reported by Sky
News.
Write to Simon Clark at simon.clark@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 09, 2015 11:35 ET (16:35 GMT)
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