Sponsors have long courted Gulf sovereign wealth. In 2025, the reward is greater than ever, but the courtship comes with more strings attached: establish a real local presence or miss out on commitments.

From Abu Dhabi to Doha, firms are scrambling to build a local presence, recruit professionals, and put money to work in the region.

Preqin described the scale of efforts at recent forums in Doha and Kuwait City. Vice-president Paul Sinthunont said the Gulf’s manager roster has “nearly tripled since 2020,” with the United Arab Emirates and Saudi Arabia now the favored headquarters for international arrivals and local GPs.

Stonepeak opened in Abu Dhabi in September and has since agreed to a $1 billion partnership with the Arab Energy Fund. Miami-based I Squared Capital will launch a Riyadh office later this year to pursue energy-transition and digital-infrastructure deals—an expansion chair Sadek Wahba called “a strategic priority.”

Brookfield Asset Management, already managing roughly $13 billion in Gulf assets, has set a $2 billion target for a dedicated Middle East fund.

KKR has redeployed senior dealmakers to Dubai and Riyadh and recently appointed General David Petraeus as chair of its Middle East franchise. Permira, Warburg Pincus and CVC are following suit with expanded boots-on-the-ground presences of their own.

The incentive is clear. Preqin’s 2025 investor survey shows 79 percent of regional limited partners plan to increase private-equity allocations and 41 percent already deploy more than one-fifth of assets to the class. Fund administrator Citco reports that Middle East assets under administration have doubled to $250 billion over the last three years.

For U.S.-based sponsors or those otherwise exposed to tariffs, a deeper Middle East presence is also viewed as a possible safe harbor during a period of increased macro volatility.

Access, however, comes with tougher terms.

“Whereas before a firm might send their second in command, they are now sending the big guns, and they’re traveling here much more frequently than before,” Talha-Khan Aquil, managing partner at UAE-based placement firm Gulf Equity Partners, told Private Equity International earlier this year.

“Any firm looking to raise capital from these sovereigns will be in for the negotiation of their lives. They’re large enough to say to the GP: ‘If you don’t give us what we want, we’re willing to walk away.’” Co-investment ratios of 1:1.5 and fee concessions are becoming standard asks.

Regional sovereigns also want proof that newly opened offices are substantive. At the FII Priority gathering in Miami, Public Investment Fund governor Yasir al-Rumayyan reminded guests that capital must be matched by on-shore activity.

Qatar Investment Authority is applying similar leverage. “There is a different level of engagement when [the partners] are prepared to invest into the country and help diversify your own economy,” said Mohsin Pirzada, who oversees QIA’s fund programs. Managers unwilling to contribute locally have been rebuffed because their interest “was just really to tap into the capital,” he noted.

Relationship-building also now extends beyond office leases.

Local events like dinners or group outings have become commonplace. Other popular approaches taken by sponsors include investment professional training programs and local recruitment efforts.

In April, Bloomberg reported on a group of senior Carlyle Group leaders who made the trip to Abu Dhabi as part of an executive training session with counterparts across the emirate's sovereign wealth funds. BlackRock has launched an early career program to hire Saudi talent for local front office roles, staffing the initiative with a cohort of investors relocated to the Kingdom from other locales.

While geopolitical concerns and oil price cyclicality are still cited as reasons for pause, most now seem to view the chance for firm-defining upside as too great to miss.

Or, as BlackRock president Robert Kapito called Saudi Arabia’s push, “the largest career alpha opportunity that I have ever seen.”

• Bristol Myers Squibb (NYSE: BMY) agreed to license a cancer drug from BioNTech (Nasdaq: BNTX) in a deal worth $11.1 billion, including $1.5 billion upfront.

• Sanofi (Nasdaq: SNY) agreed to acquire Blueprint Medicines (Nasdaq: BPMC), a Cambridge-based biotech focused on rare diseases, for $9.1 billion in cash plus up to $400 million in earnouts, representing Sanofi's third major acquisition in 2025.

• Petronas, Malaysia's state energy company, is considering the sale of its Canadian unit in a deal that could fetch up to $7 billion, per Bloomberg.

• BASF SE has launched a sale process for its coatings business, which could be valued at around €6 billion, with Carlyle Group and Sherwin-Williams considering a joint bid alongside interest from CVC Capital Partners and others.

• Chime, an SF-based neobank, set IPO terms at $24-$26 per share, which would give it a fully diluted valuation of $10.5 billion if priced at the midpoint, down from its previous peak valuation of $25 billion.

• Merck (NYSE: MRK) held talks to acquire Swiss biotech MoonLake Immunotherapeutics (Nasdaq: MLTX) for more than $3 billion, per the Financial Times.

• Ascension Health is in talks to acquire AmSurg, a Nashville-based ambulatory outpatient center operator, for around $3.9 billion, per Bloomberg.

• 3i Infrastructure is interviewing banks to manage the sale of TCR, a Brussels-based provider of airport ground support equipment, per Bloomberg.

• Capitol Imaging Services, a Louisiana-based portfolio company of Clearview Capital, acquired Outpatient Imaging, an operator of nine imaging centers in Georgia.

• O'Hara's Son Roofing, an Angeles Equity Partners portfolio company, acquired Total Systems Roofing, a Crystal Lake, Illinois-based commercial roofing contractor.

• Arax Investment Partners, a wealth and asset management group backed by RedBird Capital Partners, acquired Schechter Investment Advisors, the RIA business of Michigan-based Schechter.

• Accel-KKR acquired a majority stake in CareLineLive, a U.K.-based home care management software provider.

• The Carlyle Group and Rabo Investments acquired SurePay, a Dutch payment verification technology provider, from sellers including Connected Capital.

• Shore Capital Partners recapitalized portfolio company Sweetmore Bakeries.

• Aedifica (Brussels: AED) and Cofinimmo (Brussels: COFB) agreed to merge, creating Europe's largest healthcare REIT.

• FTV Capital agreed to acquire N2F, a European spend management software provider offering expense management and accounts payable automation solutions, from PSG Equity.

• Swander Pace Capital acquired Maple Donuts, a York, Pennsylvania-based frozen bakery products manufacturer, with Partners Capital and Constitution Capital Partners as co-investors.

• Confluence Point acquired Perry's Roofing, a Pleasantville, New York-based residential re-roofing contractor.

• Infravadis, a European underground infrastructure maintenance platform backed by Oakley Capital, acquired a majority stake in Abfluss Schäfer Group, a German provider of sewage cleaning, pipe inspection and repair services.

Tech, Vertical SaaS, & Misc. Enterprise

• Infleqtion, a Boulder-based quantum technology company developing atom-based systems for computing, sensing and timing, raised $100 million in Series C funding led by Glynn Capital, with participation from Counterpoint Global, S32, SAIC, Axial, Breakthrough Victoria, Caruso Ventures, Cyfr Capital, Golden Vision Capital, Global Frontier, In-Q-Tel, LCP, Maverick, National Security Strategic Investment Fund, Olive Ventures, Overmatch, S Ventures, and Wisconsin Alumni Research Foundation.

• Prepared, a New York-based AI platform for emergency response, raised $80 million in Series C funding led by General Catalyst, with participation from Andreessen Horowitz, First Round Capital, and Radical Ventures.

• Zero Networks, a cybersecurity company using microsegmentation to block lateral movement attacks, raised $55 million in Series C funding led by Highland Europe, with participation from F2 Venture Capital, PICO Venture Partners, Venrock, and U.S. Venture Partners.

• Voxel, a computer vision platform that detects workplace safety hazards, raised $44 million in Series B funding led by NewRoad Capital Partners, with participation from Eclipse, Rite Hite, Tokio Marine, MTech, HG Ventures, and Whitestone.

• Treefera, a supply chain data management platform, raised $30 million in Series B funding led by Notion Capital, with participation from Albion VC, Triple Point, Twin Path Ventures, and Endeit Capital.

• Trustifi, an email security and data protection platform, raised $25 million in Series A funding led by Camber Partners.

• Wordsmith AI, an Edinburgh-based legal intelligence AI platform, raised $25 million in Series A funding led by Index Ventures, with participation from Scottish Enterprise.

• Labrys, a workforce management platform for high-risk environments, raised $20 million in Series A funding led by Plural, with participation from AlbionVC, Superangel, Project A, MDOne, Expeditions Fund, and Marque Ventures.

• Netic, an AI platform that optimizes revenue for service industries, raised $20 million in Series A funding led by Founders Fund, with participation from Greylock, Hanabi Ventures, Day One Ventures, and SV Angel.

• AccelerComm, a UK-based provider of 5G technology for satellite networks, raised $15 million in Series A funding led by IP Group, with participation from IQ Capital, Swisscom Ventures, and Bloc Ventures.

• Projectworks, a project intelligence platform for consulting firms, raised $12 million in Series A extension funding led by Ten Coves Capital, with participation from Bridgewest Group and Punakaiki Fund.

• Rally UXR, a user research CRM platform, raised $11 million in Series A funding led by Canapi Ventures, with participation from Stage 2 Capital and Y Combinator.

• Veris AI, a platform for safely training and testing AI agents through simulations, raised $8.5 million in seed funding co-led by Decibel Ventures and Acrew Capital, with participation from The House Fund.

• Archil, a cloud storage startup that converts S3 buckets into high-performance local file systems, raised $6.7 million in seed funding led by Felicis, with participation from Y Combinator, Peak XV, Wayfinder, General Catalyst, Lombardstreet Ventures, and Twenty Two Ventures.

• Console, an AI-powered IT support automation platform that integrates with Slack, raised $6.2 million in seed funding led by Thrive Capital.

• LuminX, a San Francisco-based inventory automation platform for warehouses, raised $5.5 million in seed funding from 1Sharpe, GTMFund, 9Yards, Chingona Ventures, and the Bond Fund.

• Literal Labs, a Newcastle-based developer of energy-efficient AI models, raised £4.6 million in pre-seed funding co-led by Northern Gritstone and Mercuri, with participation from Sure Valley Ventures and Cambridge Future Tech SPV.

• Unbound, an enterprise AI security company that enables safe adoption of generative AI, raised $4 million in seed funding led by Race Capital, with participation from Wayfinder Ventures, Y Combinator, and Massive Tech Ventures.

• NavLive, an Oxford spin-out creating handheld scanning devices for construction professionals, raised £4 million in seed funding led by Oxford Science Enterprises, with participation from SOSV, Oxford Capital Partners, Clearance Venture Partners, AE Works, Britbots, and Oxford Innovation Finance.

Fintech

• Nomupay, an Irish fintech for cross-border payments in Asian markets, raised $40 million in Series C funding at a $290 million valuation from SB Payment Service, a SoftBank Corp subsidiary.

• OatFi, a B2B credit infrastructure platform for payment workflows, raised $24 million in Series A funding led by White Star Capital, with participation from Portage and QED.

• Atticus, a stealth stablecoin banking startup, is reportedly raising a funding round led by Palmer Luckey, CEO of defense-tech firm Anduril, at a valuation between $1.5 billion and $2 billion, with participation from Haun Ventures.

Consumer & Media

• Mubi, a London-based film streaming platform and distributor, raised $100 million in Series C funding led by Sequoia Capital at a $1 billion valuation, with participation from Summit Partners and Closer Media.

• Moments Lab, an AI video discovery platform for media companies, raised $24 million in Series A funding led by Oxx, with participation from Orange Ventures, Kadmos, Supernova Invest, and Elaia Partners.

Healthcare

• Antheia, a biosynthesis-based pharmaceutical ingredient manufacturer, raised $56 million in Series C funding co-led by Global Health Investment Corporation and EDBI, with participation from ATHOS KG, Federov, Viking Global Investors, Sherpalo Ventures, S-Cubed Capital, In-Q-Tel, and Civilization Ventures.

• Outcomes4Me, a Boston-based AI platform for cancer care, raised $21 million in new funding led by Salica Investments, with participation from Labcorp Venture Fund, Forecast Labs, Northpond Ventures, Sierra Ventures, Asset Management Ventures, IRA Capital, and Merstal LTD.

Industrials, Greentech, & Other

• TAE Technologies, a company developing commercial fusion power, raised more than $150 million in new funding from Chevron, Google, and NEA.

• Aerones, a Latvian company providing robotic wind turbine maintenance and inspection, raised $62 million in Series B funding co-led by Activate Capital and S2G Investments, with participation from Carbon Equity, Overlap Holdings, Lightrock, Blume Equity, Metaplanet, Change Ventures, and Extantia.

• Space Forge, a UK-based company developing returnable satellites for in-orbit manufacturing, raised £22.6 million in Series A funding led by NATO Innovation Fund, with participation from World Fund, National Security Strategic Investment Fund, British Business Bank, Innovation Investment Capital, Gaingels, SpaceVC, Unruly, Helium Three, Stellar, TypeOne, and London Technology Club.

• Atmen, a Munich-based company automating sustainability certification for industrial supply chains, raised €5 million in seed funding led by Project A, with participation from Revent and Vireo Ventures.

• Goldman Sachs is marketing its tenth secondaries fund, targeting a raise above the $14.2 billion gathered for its previous fund, per Bloomberg.

• Thoma Bravo raised $34.4 billion across three funds: $24.3 billion for its sixteenth flagship buyout fund, $8.1 billion for its fifth midmarket fund, and €1.8 billion for its first Europe-focused fund.

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