Alpha Dhabi, Mubadala form JV to invest in global credit market

Abu Dhabi / WAM

Alpha Dhabi Holding and Mubadala Investment Company on Thursday announced the formation of a joint venture (JV) to co-invest in credit opportunities.
Alpha Dhabi and Mubadala aim to collectively deploy up to AED9 billion (approximately $2.5 billion) over the next five years, leveraging Mubadala’s long-term and strategic partnership with Apollo, one of the world’s largest alternative asset managers, to access high-quality private credit investment opportunities.
Mubadala will hold 80% ownership in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20% to be held by Alpha Dhabi.
Hamad Salem Al Ameri, Chief Executive Officer and Managing Director of Alpha Dhabi, commented on the announcement, saying, “We have continued to assess the private credit market asset class recently with a keen interest, particularly given the current global market environment. We are proud to partner with Mubadala and Apollo – both renowned in this space – to address the global market need for alternative forms of liquidity and credit. The asset class further diversifies our portfolio and attractive risk-adjusted returns.”
Hani Barhoush, CEO of Disruptive Investments at Mubadala, stated, “We are excited to form this partnership with Alpha Dhabi at a time when 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.”
Allocations to the private credit asset class have continued to gain traction and increase regionally and are seen as a route to generate strong returns while providing effective downside protection. This is particularly pertinent in the current operating macroenvironment with rising interest rates and inflationary pressures.
Private credit investments are well placed to perform across market cycles, despite the current uncertain and volatile global capital markets landscape.