ABU DHABI, UAE: Alpha Dhabi Holding and Mubadala Investment Company introduced the formation of a three way partnership to co-invest in global credit score opportunities.
Alpha Dhabi and Mubadala aim to collectively deploy as much as AED 9 billion (approximately US $2.5 billion) over the subsequent 5 years, leveraging Mubadala’s long-term and strategic partnership with Apollo (NYSE: APO), one of many world’s largest alternative asset managers, to entry high-quality private credit score funding opportunities.
Mubadala will maintain 80% possession within the Abu Dhabi Global Market-based three way partnership entity, with the remaining 20% to be held by Alpha Dhabi.
Commenting on the announcement, Hamad Salem Al Ameri, Chief Executive Officer and Managing Director of Alpha Dhabi, said: “We have continued to evaluate the private credit score market asset class recently with a eager interest, particularly given the present global market environment. We are proud to partner with Mubadala and Apollo – each of that are famend on this space – to address the worldwide market want for alternative types of liquidity and credit.
The asset class provides additional diversification to our portfolio and attractive risk adjusted returns.”
Hani Barhoush, CEO of Disruptive Investments at Mubadala, added: “We are excited to form this partnership with Alpha Dhabi at a time when global private credit score markets are entering a interval of significant growth.
By leveraging our strong existing relationship with Apollo, and mixing Mubadala and Alpha Dhabi’s funding experience and capital, we have created a highly effective platform to entry funding alternatives throughout the world whereas driving synergies throughout Abu Dhabi’s ecosystem.”
“At Apollo, we believe that is an attractive time to deploy capital throughout private credit score markets and are excited to proceed constructing our relationships with Mubadala and Alpha Dhabi, coming collectively at a time when private markets are prime for funding against a backdrop of broader public market stress.” said Craig Farr, Apollo Partner and Head of Apollo Capital Solutions.
Allocations to the private credit score asset class have continued to gain traction and increase regionally and are seen as a path to generate strong returns whereas offering efficient draw back protection.
This is especially pertinent within the context of the present working macroenvironment with rising charges of curiosity and inflationary pressures. Private credit score investments are well positioned to carry out throughout market cycles, regardless of the present unsure and volatile global capital markets landscape.