Changing Dynamics of U.S. Asset Managers in the Middle East

The relationship between U.S. asset managers and Middle Eastern sovereign wealth funds is undergoing significant changes, particularly evident during a recent reporting trip to the Gulf. Historically, U.S. firms found it easy to secure capital from wealthy investors in regions like Abu Dhabi and Qatar. However, on this trip, it became clear that these sovereign funds are now demanding more favorable terms, a change linked to dwindling funding sources for American money managers. As U.S. pension plans become less capable of providing capital, Middle Eastern funds, with nearly $4 trillion in assets, have positioned themselves to dictate the terms of engagement.