France’s Ardian Set to Join Global Firms Planning #Kuwait Offices - Bloomberg

France’s Ardian Set to Join Global Firms Planning Kuwait Offices - Bloomberg

French private equity firm Ardian plans to open an office in Kuwait, according to people familiar with the matter, joining a growing cohort of global financial companies in establishing a presence in the Gulf state as it looks to position itself as a regional business hub.

The office, slated to open in 2026, is expected to serve as a gateway to Europe for Kuwaiti investors, the people said, asking not to be named discussing information that isn’t public. Ardian, which manages about $196 billion, would be the first major European private equity manager to set up in Kuwait.

The plans come weeks after Wafra Inc., a $28 billion money manager owned by the state pension agency of Kuwait, purchased a minority stake in Ardian. In late October, Bloomberg News reported that the pension fund — Public Institution for Social Security — was restarting private equity allocations after a hiatus, potentially unleashing billions of dollars in fresh capital into the industry.

A representative for Ardian declined to comment.

Global firms have been expanding across the Middle East, drawn by the region’s sovereign wealth funds and rich families that together control more than $1 trillion in assets. Much of that activity has centered on Saudi Arabia and the United Arab Emirates, though Kuwait has begun to attract several high-profile entrants in recent months.

BlackRock Inc. opened a branch in the country in September, followed shortly by Goldman Sachs Group Inc. and Franklin Templeton. Buyout giant Carlyle Group Inc. and State Street Corp. are also looking to establish local offices, Bloomberg News has reported.

Private equity firms have been grappling for years with a tough market for asset sales, making it harder to sell portfolio companies at acceptable valuations and dragging out the process of paying investors.

In May, the head of the $1 trillion Kuwait Investment Authority warned the industry was “very troubled,” citing practices such as continuation vehicles that can delay cash distributions to limited partners.

There are signs the logjam is beginning to ease. Goldman’s finance chief said this week that the frozen pipelines of private equity dealmaking are starting to thaw, with sponsor-led activity picking up and announced deal volumes up 40% this year.

Founded in 1996, Ardian now invests across private equity, real assets and private credit. It has around 20 offices worldwide, including one opened in Abu Dhabi in 2023. The firm manages over $27 billion for Middle Eastern clients and raised a record $30 billion this year for a secondaries fund, topping the $19 billion raised for its predecessor.