Abu Dhabi’s Mubadala Investment Company is transferring its $25bn (£18.7bn) credit portfolio to its alternative asset management arm, Mubadala Capital, giving pension funds, insurers and wealthy investors access to the platform for the first time.
Mubadala Capital will now manage the credit portfolio, opening it up to third-party capital investors. Alongside this, the Abu Dhabi sovereign wealth fund has committed $4.7bn to support the growth of the business.
The transfer of assets, which was announced today (6 July), comes after Mubadala has been investing in private debt since 2009, building the portfolio to the $25bn it stands at today. The portfolio spans direct lending, real estate and infrastructure debt, secondaries and net asset value financing, technology private credit, and Asia private credit.
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“The credit business was incubated and built inside Mubadala Capital,” said Omar Eraiqat, president and chief investment officer, credit and solutions at Mubadala Capital. “This transfer, in many ways, brings it back to where it all began.”
The move is also the latest step in Mubadala Capital’s evolution into a global alternative asset manager for third party investors, following its establishment in 2017 as an independent subsidiary of Mubadala Investment Company in 2021.
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Since then, Mubadala Capital has completed a series of transactions including the acquisitions of UK specialist lender Silver Rock Financial, Abu Dhabi real estate investor Aldar Capital, and insurer and asset manager Aquarian, growing its assets to $600bn today.
Following the transfer, Khaldoon Khalifa Al Mubarak, managing director and group chief executive of Mubadala, will join the board of Mubadala Capital as chairman, while Waleed Al Mokarrab Al Muhairi will continue to serve on the board as vice chairman.
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