Pharo Management, a $7 billion hedge fund based in New York, is setting up a new office in Abu Dhabi as part of its plan to expand its global presence. The firm, known for investing in emerging markets, is moving its Africa Fund teams from New York and London to the United Arab Emirates.
Pharo sees Abu Dhabi as a strategic location for managing its Africa-related investments because of its close time zones, easy travel connections, and growing reputation as a financial hub. The new office is expected to open by the end of the year, and more staff may relocate over time.
Pharo’s Africa Fund, worth about $819 million, trades in local currencies, credit, and interest rate markets. The fund has performed well, earning an 11.8% return through May this year, according to a person familiar with the results.
Abu Dhabi and neighboring Dubai have quickly become centers for global hedge funds. The United Arab Emirates offers several advantages, including no personal income tax, high living standards, and access to the region’s sovereign wealth funds. These benefits are drawing major investment firms from around the world.
Several leading hedge funds, including Brevan Howard, Marshall Wace and Arini, already have or are planning offices in Abu Dhabi, underscoring the Emirate’s growing influence in global finance.