Skadden recruited three investment management partners from Akin Gump to anchor a new sovereign wealth practice spanning Abu Dhabi and Washington, D.C. The hire targets the $5 trillion sovereign wealth asset category, concentrated in Gulf states whose allocators have shifted from passive equity stakes to direct infrastructure and alternatives deals.
The trio brings relationships with Abu Dhabi Investment Authority, Mubadala, and Saudi Arabia's Public Investment Fund. Skadden opened its Abu Dhabi office in 2019 but lacked dedicated sovereign wealth counsel until now. The DC leg of the practice positions the firm to handle CFIUS filings and regulatory clearances for sovereign transactions into U.S. real assets. Akin Gump loses three partners whose practices collectively billed $18 million in 2025, according to people familiar with the matter.
The move reflects two structural shifts. First, sovereign wealth funds now account for 42% of Middle East private equity co-investment volume, up from 19% in 2020. Second, Gulf allocators are deploying capital faster than their legal teams can staff. Abu Dhabi's ADIA alone committed $37 billion to new mandates in the twelve months ending March 2026, creating bottleneck demand for outside counsel who understand both Sharia-compliant structuring and U.S. securities law. Skadden's existing M&A and capital markets benches give the sovereign practice immediate deal flow. The firm advised on $420 billion in announced transactions in 2025, including three sovereign-backed infrastructure carve-outs.
Allocators should watch for two follow-on effects. First, whether Skadden's D.C. office adds a CFIUS specialist from Paul Weiss or Cleary Gottlieb within ninety days, signaling intent to own the sovereign-to-U.S. filing corridor. Second, whether ADIA or PIF announce co-investments alongside Skadden clients in the next two quarters. Those would confirm the firm captured live mandates, not just advisory relationships. Family offices co-investing with sovereign funds will face tighter documentation standards. Skadden's entry raises the table stakes for syndicate legal work.
Gulf sovereign wealth funds have $2.1 trillion earmarked for deployment through 2028. Skadden now has named partners in both jurisdictions where those cheques clear.