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UAE’s DIFC partners with Alternative Investment Management Association

The association represents more than 2,100 corporate members with over $2.5tn hedge fund and private credit assets

by Gulf Business

July 12, 2023

DIFC first in region to join forces with AIMA_DIFC

Image: DIFC

Dubai International Financial Centre (DIFC) has entered into an agreement with the Alternative Investment Management Association (AIMA), making it the first financial centre in the region to do so.

The association represents more than 2,100 corporate members with over $2.5tn hedge fund and/or private credit assets.

Arif Amiri, CEO of DIFC Authority, said, “DIFC is delighted to be the first financial centre in the region to partner with AIMA. Innovation and cross-border collaboration attract capital flows and opportunities in growth markets for high-performing hedge funds with a range of investment strategies.

“This agreement marks yet another pivotal moment for Dubai and DIFC as we continue to attract world-class talent, whilst driving the future of finance by providing a robust and hyper-connected ecosystem for the alternative investment industry that enables them to manage their global portfolios efficiently.”

#DIFC the 1st in the region to join forces with @AIMA_org , as five additional hedge funds establish, reaffirms role as a global hub for alternative investments & hedge funds.

Read more about this collaboration here: https://t.co/oSH7AXvowJ pic.twitter.com/hquXpDUXqs

— DIFC (@DIFC) July 11, 2023

Jack Inglis, CEO, AIMA, commented, “The past year has seen many reports of alternative investment managers, including some of the industry’s largest names, opening offices in the UAE. AIMA has enjoyed member representation in the region for over 15 years and has closely watched its growth as an important global financial hub, not just for alternative investments but also the wider asset management industry.

“In signing this MOU, we are pleased to partner with a recognised industry leader in the DIFC to further assist our members in Dubai and support the maturation of the alternative asset management sector in this vibrant location.”

DIFC sees rising influx of alternative investment firms and hedge funds

Hedge funds establishing their regional presence in DIFC during Q2 this year include: Hudson Bay Capital, a multi-billion-dollar hedge fund operating in Greenwich, New York, Miami and London; Asia Research and Capital Management, the privately owned asset management firm founded in 2011 headquartered in Hong Kong; King Street Capital, a leading global alternative asset manager founded in 1995 with more than $23bn across an institutional platform spanning multiple segments of the public and private markets; Balyasny Asset Management, founded in 2001 with over 1,000 investment professionals across all major financial centres; and Verition Fund Management, the multi-strategy, multi-manager hedge fund founded in 2008 focusing on global investment strategies.

These firms will relocate senior employees to DIFC to conduct portfolio management and investor relations activities.

Meanwhile, new private equity firms establishing offices in the centre include TPG Global, Rockpoint and CVC Capital Partners.

The centre also offers a broad network of partners for portfolio managers setting up in Dubai.

It is in discussions with global hedge funds that are looking to establish offices within the centre, where they benefit from a large and growing bank of support services, including prime brokers, law firms, consultancies, and tax specialists.

Read: Dubai’s DIFC in talks to attract 50 hedge funds