Alpha Dhabi-Mubadala’s Credit JV Portfolio Cross $1 Billion

A credit joint venture established by the state-owned investors in Abu Dhabi Mubadala Investment Company and Alpha Dhabi Holding, in partnership with one of the world’s largest asset management firms Apollo, has drawn plans to deploy up to $2.5 billion in global credit opportunities by 2028.

In fact, the JV launched by the two companies, which was launched in 2023, has reached a significant milestone, building an approximate $1 billion portfolio in global credit opportunities, Alpha Dhabi Holdings said in a regulatory disclosure with Abu Dhabi Securities Exchange (ADX) this morning.

This achievement marks a key step toward the partnership’s goal of deploying up to $2.5 billion by 2028, underscoring its strong momentum and progress, Alpha Dhabi Holding said.

The JV, which is based in Abu Dhabi Global Market and is 80% owned by Mubadala with Alpha Dhabi owning the remaining 20%, leverages Mubadala’s long-term and strategic partnership with the US-based Apollo, to access high-quality private credit investment opportunities.

Since its inception in 2023, the JV has focused on identifying and capitalising on compelling credit opportunities in sectors and geographies that offer attractive risk-adjusted returns.

Partnerships with Leading Firms

Managing Director and Group CEO of Alpha Dhabi Holding Hamad Salem Al Ameri said that Alpha Dhabi’s partnership with Mubadala and Apollo emphasise their commitment to best-in-class long-term partnerships with leading investment managers.

“For us, gaining access to proprietary private credit opportunities enables us to generate superior risk-adjusted returns while diversifying our portfolio from an asset class and geographical perspective,” he added.

Omar Eraiqaat, Deputy CEO of Credit and Special Situations at Mubadala, said that this has been a significant milestone for their JV with Alpha Dhabi, which leverages Mubadala’s existing strategic relationship with Apollo.

He added: “This achievement underscores the strength of the platform we have built, and our commitment to identifying and capitalizing on high-quality private credit investments. We look forward to continuing this momentum and reaching the goal of our partnership.”

Apollo Partner Jim Vanek said that the two Abu Dhabi-based firms were important long-term partners to Apollo.

Mubadala’s journey in credit investments dates back to 2009, with its Credit Investments unit successfully navigating private markets through making investments into middle-market and large-cap companies globally.

Alpha Dhabi recognises that credit investing comes with vast opportunities as well as potential risks. The Group continuously refines its approach to risks and prospects to ensure appropriate investment outcomes.

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 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.