Alpha Dhabi and Mubadala partner to invest in credit opportunities

The two will collectively deploy up to $2.5 billion (AED 9 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 percent stake in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20 percent to be held by Alpha Dhabi.

Hamad Salem Al Ameri, chief executive officer and managing director of Alpha Dhabi, said the decision followed its assessment of the private credit market asset class, particularly in the backdrop of 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,” Al Ameri said.

Hani Barhoush, CEO of disruptive investments at Mubadala, said the partnership venture assumes significance 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,” he said.

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 macro-environment 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.