Middle East sovereign wealth fund Mubadala Investment Co.’s alternatives subsidiary will take a 42% stake in credit manager Silver Rock Financial.
The value of the stake was not disclosed.
Abu Dhabi-based Mubadala Capital has the option of increasing its ownership stake to 50% over time, a joint news release said.
Los Angeles-based Silver Rock has $10 billion in assets under management across evergreen funds, drawdown vehicles, co-investments and a structured corporate credit collateralized loan obligation platform.
As part of the partnership, Mubadala Capital — which has about $20 billion in assets under management — intends to commit more than $1 billion to Silver Rock funds over time. Mubadala will take its stake through a combination of cash and stock.
As part of the deal, Mubadala Capital is for the first time adding external shareholders to its business. Carl Meyer, CEO and CIO, and Michael Haberkorn, co-founder and co-portfolio manager, of Silver Rock will become equity owners of Mubadala’s asset management platform, along with M-Cor Capital, the investment unit of the Milken Family Office. Meyer and Josh Lobel, CEO of M-Cor, will join Mubadala Capital’s advisory board. Silver Rock was spun out of the Milken Family Office in 2016.
The arrangement forms part of Mubadala Capital’s plan to diversify and expand its asset management capabilities and offerings, the release said. The firm will gain access to Silver Rock’s credit expertise, while Silver Rock will benefit from Mubadala Capital’s global footprint, industry network, and capital and investor base.
Both firms will operate independently, with Meyer remaining as CEO and CIO of Silver Rock. The deal is expected to close by the second quarter of next year, subject to regulatory and legal approvals.
"We are excited to partner with Silver Rock, a firm that shares our vision of delivering tailored, innovative and scalable solutions to investors globally, underpinned by seeking best-in-class financial returns,” Hani Barhoush, managing director and CEO of Mubadala Capital, said in the release. “This milestone transaction reflects Mubadala Capital's evolution as a global alternative asset manager and underscores our commitment to building partnerships that drive long-term value.”
Of adding new shareholders, Barhoush said: “Bringing new partners into our ownership structure aligns with our vision to diversify and strengthen the Mubadala Capital platform, and we look forward to leveraging their insights and experience as we continue our growth trajectory."
Mubadala Investment Co. has about $302 billion in assets.
