Dubai propels hedge fund growth with the launch of new platform

Capricorn Fund Managers Ltd. is introducing a regulatory hosting platform in Dubai designed to assist hedge funds and investment firms in quickly establishing their operations in the city’s financial district.

The London-based company will allow investment managers to operate under its regulatory license at the Dubai International Financial Centre (DIFC), as stated in a recent announcement.

“With Capricorn’s hosting solution, we are creating a new pathway for managers to obtain licensing and begin operations in Dubai,” Salmaan Jaffery, Chief Business Development Officer at DIFC told Bloomberg.

Regulatory hosting platforms provide cost-effective solutions and handle numerous administrative functions, enabling investment managers to focus on generating profits.

Over the past few years, Dubai has become an attractive destination for hedge funds. Industry leaders like Millennium Management and Balyasny Asset Management have expanded their presence in the Gulf city, drawn by a host of incentives, a strategic timezone, and a favorable tax structure.

This trend has led to the hedge fund sector’s workforce in Dubai growing to over 1,000, while the DIFC has seen a two-thirds increase in employee numbers since 2019, now totaling nearly 44,000. The financial free zone currently hosts more than 400 wealth and asset management firms, including over 60 hedge funds.

Capricorn Fund Managers is part of the Capricorn Group, a family-owned business involved in alternative investments since 1994 and investment management since 2003.