Abu Dhabi Investment Company has launched a new fund with private investment banking company Blackstone to offer investors local feeder access to its US and European private credit strategies.
The Invest AD Blackstone Private Debt Fund is an SCA (Securities and Commodities Authority) regulated fund which will bring Blackstone’s institutional-calibre credit platform to qualified non-US investors, primarily in the UAE.
“This strategic partnership with Blackstone will enable us to provide our clients with access to semi-liquid private credit platforms,” said Mohammad Behzad Saleemi, CEO of Invest AD.
“Private credit has the potential to generate strong returns as part of investors’ portfolios, and we look forward to partnering with the leading player in this space to broaden access to this asset class,” Saleemi added.
Its launch marks the first global private credit fund of funds vehicle for professional investors in the UAE, following the SCA regulatory announcements in January this year. The launch broadens access to an asset class that has historically only been primarily accessible to institutional investors.
Blackstone Credit’s investment approach focuses on generating income through investments primarily in the senior secured debt of major private sector firms in the US and Europe.
The firm concentrates its efforts on higher-priority secured debts with floating interest rates, such as senior loans, seeking to capitalise on this area of the credit markets. This strategy targeting upper-level debts aims to balance the pursuit of yields with prudent risk management.
“We are proud to partner with Invest AD to expand access to institutional quality private credit solutions for their clients, as we have done in markets around the world. We are seeing strong demand for private credit today,” said Rashmi Madan, Head of EMEA for Blackstone Private Wealth Solutions.
“We believe the current double-digit yields we’re seeing in the asset class present a compelling opportunity for returns similar to that of historical equity performance, while taking senior secured risk,” Madan added.
Blackstone Credit, one of the world’s largest credit managers, has significant experience investing in the private credit space. Today, private credit strategies make up over half of Blackstone Credit and Insurance’s $295 billion platform.
Invest AD: Mubadala’s strategic arm
Founded in the late 1970s, Invest AD is a subsidiary of Mubadala and was created to drive investments and foster greater economic growth in the UAE capital. It deploys significant capital towards seeding innovative financial products and partners with top global asset managers to craft customised investment solutions for clients.
As a subsidiary of the strategic fund, Invest AD is able to tap into an extensive worldwide network spanning governments, businesses and regulators through its ownership. This provides clients with exclusive access to high-potential opportunities in core target markets that are otherwise inaccessible to other firms.
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