Mallard Capital LLC

A significant shift is underway in the Gulf Cooperation Council states. Family offices - historically passive allocators who placed capital through fund-of-funds structures or sovereign wealth fund programs - are increasingly making direct investments into private equity, real estate, technology, and infrastructure deals.

The numbers are striking. Direct investment activity from Gulf-based family offices grew by an estimated 25 to 30 percent in 2024, according to multiple industry surveys. Single-family offices in Abu Dhabi, Dubai, and Riyadh are building dedicated investment teams, hiring analysts, and actively sourcing deal flow for the first time.

This is driven by several factors. Generational transition is putting younger, more operationally minded family members in control of investment decisions. The success of sovereign wealth funds like Mubadala, ADQ, and PIF in direct investing has created a template that family offices want to replicate. And the economics are compelling - direct investments avoid the double layer of fees inherent in fund-of-funds structures.

For sponsors, this creates both opportunity and complexity. The opportunity is obvious: a new and growing pool of capital with large check sizes, long hold periods, and a preference for co-investment structures that align well with how most mid-market deals are capitalized.

The complexity lies in access. Gulf family offices are notoriously private. They do not attend the same conferences as U.S. institutional LPs. They do not respond to cold emails. They make investment decisions based on personal relationships, cultural trust, and referrals from people within their network.

This is precisely why the intermediary model matters. A trusted advisor who understands both the sponsor's deal and the family office's mandate can bridge the gap in a way that cold outreach never will. The capital is there. The appetite is real. But the path to it runs through relationships.