UAE’s Alpha Dhabi, Mubadala to co-invest in global credit opportunities

Alpha Dhabi Holding and Mubadala Investment Company are forming a joint venture to co-invest in credit opportunities.

Mubadala will hold 80 per cent ownership in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20 per cent held by Alpha Dhabi.

The companies aim to jointly deploy up to Dhs9bn (approximately $2.5bn) over the next five years, leveraging Mubadala’s long-term and strategic partnership with Apollo, one of the world’s largest alternative asset managers.

Hamad Salem Al Ameri, CEO and MD of Alpha Dhabi, said: “We have continued to assess the private credit market asset class recently with keen interest, particularly given the current global market environment. We are proud to partner with Mubadala and Apollo – both of which are renowned in this space – to address the global market need for alternative forms of liquidity and credit. The asset class provides further diversification to our portfolio and attractive risk-adjusted returns.”

Hani Barhoush, CEO of Disruptive Investments at Mubadala, added: “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 around the world while driving synergies across Abu Dhabi’s ecosystem.”

“At Apollo, we believe this is an attractive time to deploy capital across private credit markets and are excited to continue building our relationships with Mubadala and Alpha Dhabi, coming together at a time when private markets are prime for investment against a backdrop of broader public market stress,” said Craig Farr, Apollo Partner and Head of Apollo Capital Solutions

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 context of 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.

In recent news, Alpha Dhabi announced that it has acquired a stake in Mykonos-based Nammos Group. This came as a result of its joint venture partnership with Monterock International, an investment company with a focus on the hospitality and food and beverage (F&B) sectors.

Read: Alpha Dhabi launches lifestyle vertical with investment in Nammos Group