In this edition of ION Influencers Fireside chat, James Varela, Partner and Head of MENA at Rede Partners — a global fundraising advisory firm with 150 professionals across the globe – talked about trends in the Middle East Investing. Varela has spent nearly two decades raising capital across multiple geographies, and his current focus is the most dynamic, misunderstood, and capital-rich region in private markets today. Here’s what GPs need to know.

The Global Edge: Why “Local Only” Doesn’t Cut It Anymore

Varela’s opening thesis was counterintuitive but emphatic: Being a regional advisor is a disadvantage.

“One of the challenges if you are a local advisor is you just can’t bring that level of intelligence,” he said. Rede’s structure—spanning Asia, Europe, and the US—allows it to show up to a sovereign wealth fund in Abu Dhabi and say: Here’s how US pension funds are approaching mid-market buyouts. Here’s what Asian LPs are rotating into.

This isn’t flattery. It’s utility.

“They really value that from us,” Varela added. “We view ourselves a little bit as unpaid consultants to the LPs.”

That mindset—earn the conversation before you ask for the check—is the foundation of every successful capital introduction in the region.

The Symbiosis: What GPs Want vs. What MENA LPs Need

Not every GP belongs in the Middle East. Varela’s team turns down mandates as often as they take them.

“Sometimes there are US investors that don’t really fit the bill,” he said plainly. “We have to be very transparent and say: Now is not the right time.”

When they do proceed, the process is forensic:

• Why the Middle East? Diversification? Or just filling a cap table gap?

• Existing relationships? Have you spent time here, or are you cold-starting?

• Co-invest history? Not just volume, but fit—size, structure, alignment.

“It’s about being efficient with your time,” Varela stressed. A $300M first-time fund has no business knocking on the door of a sovereign wealth fund deploying billions. The right audience is often family offices—but only if you know which ones.

The Evolving Sovereign: Fewer Consultants, More In-House Firepower

One of the most significant structural shifts in the region: Sovereign wealth funds are insourcing.

“They have built quite large in-house teams to deliver their objectives,” Varela noted. These teams are often organised along sector lines, staffed with specialists who can evaluate co-investments and direct deals without external intermediaries.

The implication for traditional consultants is existential. “Over time, you are going to see less reliance on external consultants,” he said. “There is a real question for those firms: What makes sense longer term?”

But for GPs? This is actually good news. Sophisticated counterparties mean faster decisions—provided you come prepared.

The Family Office Wave: From Real Estate to Real Assets

If sovereigns are the anchor tenants, family offices are the emerging growth story.

Varela described a bifurcated market:

• Established families with large teams already deploying $20M–$50M tickets into private markets.

• A new wave of single-family offices—often built on regional real estate wealth—now dipping their toes into global private equity, private credit, and co-invest.

The latter group needs education. How do I build a program? What are the tax and legal implications? How do I access top-tier GPs in Europe or the US?

“That is probably where an interesting market opportunity lies,” Varela said. “Helping those newer institutions establish the right frameworks and portfolio construction.”

Ticket size floor for “small”? $3M–$5M. Serious scale starts at $10M–$15M.

Co-Invest: The $40B Market That’s Changing Shape

If you are raising capital in MENA and not talking about co-invest, you are invisible.

In the first half of 2025 alone, co-invest deals in the region totalled £40 billion. But the nature of those deals is shifting.

Historically, sovereign wealth funds pursued co-underwrites: large, trophy assets, often single transactions. Today, the appetite is for diversified co-invest portfolios.

“They want to deploy the same amount of capital, but split over three or four investments,” Varela explained. “Greater diversification, same quantum.”

This opens the door for GPs who can offer curated co-invest sidecars—not just fund commitments.

The Office Question: Do You Need a Desk in Dubai?

Short answer: No. Unless you have a real reason.

“If it’s purely for fundraising, it probably doesn’t make as much sense,” Varela said, “unless you are one of the very large global GPs where it’s a must-have.”

The mistake? Treating an office as a fundraising shortcut.

“Investors in the region are very sophisticated,” he warned. “They know when people are doing things for the right reasons versus doing it for a short-term reason to raise capital.”

The threshold for credibility: Can this office do more than fundraise?

• Investing in the region?

• Bringing portfolio companies here?

• Transferring technology or intellectual property?

If the answer is no, stay home. Build relationships first. Fly in. Earn the right to land.

Do’s and Don’ts for GPs (The Australia Test)

Varela was asked: I’m an Australian GP with global presence. Where do I start?

Do:

• Plan early. This is a 5–10 year relationship game, not a 6-month fundraise sprint.

• Think in assets, not just funds. Secondaries, co-invest, thematic vehicles—use every tool in the kit.

• Differentiate relentlessly. Portfolios are mature. Why must this LP own you?

Don’t:

• Turn up cold expecting cheques.

• Assume an office = commitments.

• Lead with “We want to raise capital here.” Lead with value.

Rapid-Fire Predictions (2026–2027)

• M&A activity? A little more than previous years.

• Secondaries? Definitely increasing—a major focus for regional investors.

• Emerging managers? Yes, but with a caveat. Spin-outs from established firms with attributable track records and co-invest firepower have a clear edge. First-time, lower mid-market funds face a steeper climb.

• Thematic funds? Greater focus on specialism—AI, healthcare, industrials—but not thematic for thematic’s sake. Track record required.

• Private market allocation by family offices in 10 years? Up significantly. The barrier today? Liquidity obsession and fear of lock-up. Education will erode both.

Bullish vs. Cautious

Most bullish: Private equity buyout.
Most cautious: Venture capital. “It depends on the strategy.”

The Bottom Line

The Middle East is no longer a “nice-to-have” stop on a global fundraise. It is a core capital pool with distinct mechanics, high expectations, and zero tolerance for tourists.

The winners will be GPs who:

• Treat relationship-building as a multi-year investment

• Bring differentiated global insight, not just a pitch deck

• Understand that co-invest is not a bolt-on—it’s table stakes

• Resist the temptation to open an office before they’ve earned the right to one

“It is not a transactional market,” Varela said. “It is about taking your time, understanding needs, and figuring out how you can help.”

Those who get that will find the door open. Those who don’t? The region’s sophistication will filter them out—quickly.

Key timestamps:

00:07 Introduction to the Fireside Chat
00:44 James Varela’s Background and Role
01:18 Global Perspective in Middle East Capital Markets
02:46 Engaging with US Funds and Middle Eastern Investors
05:25 Triangulating Information from Investors
06:51 Building Relationships with Sovereign Wealth Funds
08:17 The Evolution of the Market and Consultancy Role
09:49 Emergence of Family Offices in the Region
10:34 Education Journey of Family Offices in Private Markets
12:41 The Importance of Co-Investment in the Region
14:25 Fundraising, Consultancy, and Strategic Priorities
15:25 Do’s and Don’ts for General Partners
18:25 Recommendations for Australian Funds in the Middle East
20:29 Market Trends and Future Predictions
23:02 Outlook on Asset Classes