Alpha Dhabi and Mubadala partner to co-invest in global credit opportunities
The two entities will collectively deploy up to AED9 billion or approximately $2.5 billion over the next five years.
and Mubadala Investment Company have formed a partnership to co-invest in credit opportunities with a joint venture.
Alpha Dhabi and Mubadala will collectively deploy up to AED9 billion (approximately $2.5 billion) over the next five years, as per the official press note. The partnership will leverage Mubadala’s long-term and strategic partnership with alternative asset manager Apollo to access high-quality private credit investment opportunities. As of September 30, 2022, Apollo had managed approximately $523 billion worth of assets.
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Mubadala will have 80% ownership in the joint venture entity, and Alpha Dhabi will have the remaining 20% ownership.
Allocation to the private credit asset class is becoming popular in the region. Private credit often refers to direct lending to small or medium-sized companies that find it difficult to tap into public credit markets. It also includes distressed and special situation markets. It is seen as a route to generate strong returns while providing effective downside protection.
Abu Dhabi-based Alpha Dhabi Holding, established in 2013, is a conglomerate of almost 100 businesses such as construction, healthcare, hospitality, petrochemical, real estate, and investments.
Mubadala Investment Company is a sovereign investor aimed at generating sustainable financial returns for the Government of Abu Dhabi.
