Sovereign wealth fund Mubadala Investment Co., Abu Dhabi, will co-invest 9 billion dirham ($2.5 billion) in global private credit over the next five years via a joint venture with UAE conglomerate Alpha Dhabi, a spokesman confirmed.
Mubadala, which has $284 billion in assets, owns 80% stake in the joint venture, with the remainder held by Alpha Dhabi. The wealth fund will leverage its long-term and strategic partnership with alternative money manager Apollo "to access high-quality private credit investment opportunities," it said in a news release. In February, Mubadala expanded its partnership with Apollo to originate transactions across various asset classes over the next five years.
Hani Barhoush, CEO of disruptive investments at Mubadala, said in the release Thursday that global private credit markets are entering a period of significant growth.
"By leveraging our strong existing relationship with Apollo and combining Mubadala and Alpha Dhabi's investment expertise and capital, we have created a powerful platform to access investment opportunities worldwide while driving synergies across Abu Dhabi's ecosystem," he added.
Hamad Salem Al Ameri, CEO and managing director of Alpha Dhabi, said in the same release that adding private credit further diversifies the firm's holdings and adds attractive risk-adjusted returns.
"We have continued to assess the private credit market asset class recently with a keen interest, particularly given the current global market environment," he said.