Abu Dhabi Investment Authority (ADIA), the emirate’s $892bn sovereign wealth fund, is upping its private credit exposure with an increased commitment to alternative asset manager Cheyne Capital’s capital solutions strategy, a real estate private credit fund.
ADIA’s statement confirms that it is upping its commitment to the ninth vintage of Cheyne’s strategy to £650m ($831m).
In the statement, Mohamed Al Qubaisi, Executive Director of the real estate department at ADIA, said: “We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship.
“We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital.”
The move is the latest sign of growing sovereign wealth funds interest in the $1.6tn private credit market and comes just months after Mubadala Investment Company said it would be an anchor investor in a new special situations fund set up by Starz Real Estate targeting refurbishment and redevelopment opportunities across Europe.
Earlier this week, Jada, a unit of Saudi Arabia’s PIF sovereign fund, announced a $53m investment into a fund raised by San Francisco-based Partners for Growth, its second private credit investment to date.
