Gulf Private Credit Gains Momentum as Global Firms Look East
The Gulf region is attracting increasing attention from global finance firms seeking private credit opportunities. In a notable move, Ares Management provided a $100 million facility to a Dubai-based multifamily office, signaling growing appetite for NAV financing and credit strategies that navigate the region’s evolving investment landscape. The deal underscores how private credit is becoming a viable channel for sophisticated investors seeking yield, diversification, and long-term capital preservation amid shifting interest rates and liquidity cycles.
What the deal entails
According to Ares, the arrangement centers on net asset value (NAV) financing, a form of credit that allows asset managers and affiliated entities to borrow against the value of their portfolios. For a Dubai-based multifamily office—an advisory and asset-management firm with multiple family office clients—the facility provides liquidity without forcing asset sales or market timing. This structure can be particularly appealing in a region where real estate and private market valuations can be volatile and where capital preservation is often paramount for high-net-worth families and institutional partners.
Why Gulf private credit is gaining traction
Several drivers are converging to boost private credit activity in the Gulf. First, banks in the region have become more selective post-pandemic, narrowing credit appetites for certain risk profiles and investment horizons. Private credit funds and asset managers can fill this gap by offering tailored structures, longer tenors, and covenants that align with family offices’ long-term planning needs.
Second, the Gulf’s macro environment—characterized by robust sovereign wealth reserves, ongoing diversification efforts, and infrastructure development—creates a steady demand for credit across real estate, small business finance, and private equity co-investments. For international managers, this environment presents a compelling opportunity to deploy capital with governance and risk controls that match global standards.
Strategic implications for managers and families
For family offices and asset managers, private credit in the Gulf can enable more dynamic capital allocation. NAV-based facilities unlock liquidity to fund growth, liquidity events, or portfolio rebalancing without triggering taxable realizations or timing trades in sensitive markets. The arrangement with a well-capitalized U.S. sponsor also signals a preference for cross-border partnerships, where international risk management and reporting frameworks help reassure investors about alignment and transparency.
Risk management and regulatory considerations
As with any cross-border private credit program, stakeholders will monitor concentration risk, currency volatility, and regulatory compliance. Gulf markets are subject to evolving oversight, and high-quality counterparties typically seek robust governance, independent accounting, and clear collateral terms. Ares’ involvement offers an investment-grade stamp of credibility that can attract other lenders and co-investors while setting a benchmark for responsible lending in private credit circles.
Market outlook
Analysts expect Gulf private credit to continue expanding as capital inflows intensify and deal structuring becomes more sophisticated. For banks, wealth managers, and family offices, the strategy is not merely about chasing yield; it is about building diversified, resilient portfolios that can navigate interest rate cycles and geopolitical developments. The Ares– Patrimium-type collaborations may become more common as investors seek scalable, risk-aware ways to access regional opportunities without sacrificing liquidity.
Conclusion
The $100 million NAV financing facility illustrates a broader trend: global financial players are increasingly looking to the Gulf for high-quality private credit opportunities. For a Dubai-based multifamily office, the arrangement provides practical liquidity solutions and access to international capital partners, helping to secure long-term family wealth through prudent, diversified credit exposure. As Gulf markets mature, such partnerships could play a pivotal role in shaping the next chapter of private credit growth in the region.
