Alpha Dhabi in JV with Mubadala to co-invest in global credit opportunities

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Alpha Dhabi and Mubadala aim to collectively deploy up to Dh9 billion (approximately US $2.5 billion) over the next five years
Image Credit: Bloomberg

Dubai: Alpha Dhabi holdings is entering a joint venture with Mubadala Investment Company to co-invest in credit opportunities.

Alpha Dhabi and Mubadala will collectively deploy up to Dh9 billion over the next five years, leveraging Mubadala’s partnership with Apollo. According to its filing with the Abu Dhabi Securities Exchange (ADX), Mubadala will hold 80 per cent ownership in the Abu Dhabi Global Market-based joint venture entity, and Alpha Dhabi 20 per cent.

“We have continued to assess the private credit market asset class recently with a keen interest, particularly given the current global market environment,” Hamad Salem Al Ameri, CEO and Managing Director of Alpha Dhabi. “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.”

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.

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.”