Mubadala Investment Co., Abu Dhabi, has formed a partnership with money manager Barings to provide financing to European middle-market businesses.
The $232.2 billion sovereign wealth fund announced the creation of the Barings Mubadala Enterprise — "an evergreen origination platform" — on its Twitter account on Tuesday.
The partnership will invest along with Massachusetts Mutual Life Insurance Co. and its subsidiary Barings' capital, a news release said. BME and its partners aim to provide $3.5 billion in financing over the next 18 months, a news release said.
"Mubadala has a long history of establishing strong, value-creating partnerships with leading global organizations," Waleed Al Mokarrab Al Muhairi, deputy group CEO and CEO of alternative investments and infrastructure at Mubadala, said in the release. "The partnership with Barings, through the establishment of BME, is very consistent with this approach."
The partnership will focus on opportunities in the U.K., France, the Benelux area and the Nordics.
"We are looking to take advantage of middle-market direct lending opportunities, focusing on senior secured loans as borrowers shift focus from traditional bank financing to institutional capital providers to fund acquisitions and growth projects," Tom Finke, chairman and CEO at Barings, added in the release.
Barings runs $346 billion in assets under management, with $14.2 billion managed by the global private finance group, its direct lending business.
Spokesmen for Mubadala could not immediately be reached for comment.
