Mubadala Investment Company is opening its $25bn credit platform to outside investors for the first time, as the Abu Dhabi sovereign wealth fund looks to capitalise on rising institutional demand for private credit, according to a report by Bloomberg.
The wealth fund is transferring management of the portfolio to Mubadala Capital under a long-term agreement. Mubadala will also commit a further $4.65bn to support the platform’s expansion.
The move will allow Mubadala Capital to raise third-party capital for the credit business, which spans direct lending, infrastructure and real estate debt, private credit secondaries, NAV financing, technology private credit and Asia-focused lending.
Mubadala Capital CEO Hani Barhoush said the new structure gives the firm flexibility to launch traditional funds, evergreen vehicles and other products for external investors.
The credit business will be led by Omar Eraiqat, senior partner, president and chief investment officer for Credit and Solutions, alongside Fabrizio Bocciardi, senior partner and head of credit. More than 25 people have transferred to Mubadala Capital as part of the move.
Eraiqat told Bloomberg that Mubadala began investing in private credit in 2009, building the business through partnerships with specialist managers rather than by creating a standalone lending platform. The firm is reportedly targeting opportunities created by banks’ retreat from direct lending, particularly in Europe and Asia.
