The HFM European Operational Leaders Summit, an exclusive invitation-only event, stands as a cornerstone in the hedge fund industry’s annual calendar. It consistently draws top COOs, CFOs, and other key C-suite leaders from Europe’s foremost firms.
SS&C, a titan among global fund administrators, had a significant presence. One of its senior directors, Mastan Momin, took part in an expert panel that delved into emerging growth markets and strategies for maneuvering through today’s intricate investment terrain.
The discussion kicked off with an exploration of both legal and practical hurdles faced when expanding a workforce into a new global region, and how to cultivate a cohesive culture across international operations.
Dubai and Abu Dhabi emerged as prime destinations attracting eager investment firms. However, one panelist highlighted a challenge: securing an office space in Dubai took over five months from the application stage—a notably slow timeframe in the swift-paced financial world. In stark contrast, SS&C managed to establish its newest office in the Abu Dhabi Global Market (ADGM) in just 12 weeks.
This efficiency makes Abu Dhabi—particularly ADGM—an increasingly appealing hub for managers, especially in areas like venture capital, private equity, and private credit funds, according to Mastan. He cited several key reasons for this trend.
“Being close to significant sovereign wealth funds such as ADIA, ADQ, and Mubadala naturally positions Abu Dhabi as a central hub for raising capital. The development of ADGM as a free zone has also simplified securing office space. Add to that the favorable regulatory environment,” he explained.
“The FSRA has demonstrated remarkable cooperation, providing a streamlined licensing process that usually takes 12 to 14 weeks. ADGM’s application of English Common Law is unique in the region, assisting managers in blending into the local ecosystem,” he continued.
Consensus among the panelists suggested the most effective approach to staffing new offices is a hybrid strategy—relocating seasoned employees while simultaneously recruiting locally to inject fresh ideas and regional expertise.
“This blend of global know-how and local insight has enabled us to forge a nimble, well-synchronized team that is rooted in the local milieu and geared for future expansion,” Mastan shared.
Subsequently, the conversation shifted to how these burgeoning teams can be woven into an existing global culture. Pinpointing the right people, merging them into a worldwide organizational ethos, yet adapting it to accommodate local nuances, posed significant challenges.
The panelists discussed various methods to handle this—from organizing regular cross-regional meetings to foster connectivity, to establishing mentorship programs to guide new employees through both local and global expectations.
“Flexibility is vital,” Mastan stressed. “While our goal is to maintain a unified culture, we respect and integrate local values and working methods,” he clarified.
He admitted that ensuring new teams don’t feel detached is a major task. He revealed that SS&C leverages its unified platform technology to maintain smooth communication across regions.
“But it transcends just having the right tools,” he cautioned. “It’s about nurturing an inclusive environment where everyone feels they have a platform to voice their thoughts, regardless of whether they are in London, New York, or Abu Dhabi.”
The moderator delved into the driving forces drawing fund managers to these markets, with panelists signaling Europe’s increasing regulatory demands as a major factor.
Given the discrepancies between UK and EU regulatory regimes, any UK-based firm aiming to operate in Europe must juggle dual frameworks for MiFIR/MiFID II, EMIR (EU and UK), SFTR, AIFMD, and beyond. This regulatory divergence is thought to have effectively doubled the compliance costs for these firms.
As the session wound down, Mastan offered guidance for leaders navigating such complex regulatory landscapes. It’s crucial, he advised, to emphasize two core principles: proactivity and adaptability.
“Whether you’re operating within established markets like the UK and EU or expanding into new territories such as Abu Dhabi, these principles are crucial to achieving success,” he told attendees.
“Success hinges on viewing these challenges not as roadblocks but as stepping stones to international expansion. And partnering with the leading firms will assist in your initial setup and propel your future developments,” he concluded.
For more in-depth insights, our “Customer Due Diligence in the Abu Dhabi Global Market” brochure provides guidance on understanding ADGM’s regulatory framework. Additionally, feel free to check out our UAE resource page.
