Abu Dhabi Wealth Fund Closes London Office

LONDON—One of the world's most powerful sovereign wealth funds is bucking the trend towards global expansion among its peers by shutting its office here.

The London office of the Abu Dhabi Investment Authority, it's only international hub, is closing down after more than 20 years.

"This has no impact on our investments in, and commitment to, the U.K., which will continue as before," ADIA spokesman Erik Portanger said.

The fund doesn't disclose its total assets, which are estimated to be in the hundreds of billions of dollars. In the U.K., ADIA owns stakes in the operator of Gatwick Airport, water utility Thames Water, train-leasing company Angel Trains and hotels including the high-end Lanesborough in London.

ADIA declined to give a reason for the closure of the office. Scrutiny of sovereign wealth funds from oil-rich nations is increasing as oil prices decline, potentially reducing available resources for the funds. ADIA was created in 1976 and invests in equities, bonds, private equity, infrastructure and real estate. It has 1,650 staff from 60 nations according to its 2014 annual report.

Sovereign-wealth funds that are expanding into new territories include the Qatar Investment Authority, which opened a New York office in September and pledged to invest $35 billion in the U.S. in five years. Norway's sovereign-wealth fund opened an office in Tokyo in October. Singapore's Temasek Holdings Pte. Ltd. opened offices in London and New York last year. China Investment Corp. opened in Toronto in 2011.

In recent years ADIA has been hiring more in-house money managers to avoid relying on external asset management firms—a trend at some of the largest managers of national wealth from Norway to Singapore. ADIA managed 35% of its money in-house in 2014, compared with 25% in the previous year.

The Abu Dhabi fund is also participating in more corporate takeovers, including purchases this year of German roadside services company Autobahn Tank & Rast GmbH and Netherlands-based car-leasing company LeasePlan Corporation NV.

The closure of the London office was first reported by Sky News.

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(END) Dow Jones Newswires

November 09, 2015 11:35 ET (16:35 GMT)

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