Barings and Abu Dhabi’s Mubadala Investment Company have launched a $500m (£373.7m) global real estate debt partnership.
Abu Dhabi’s second-largest sovereign investor will be investing alongside Barings’ parent company MassMutual, and the joint venture will be managed by Barings.
The partnership will focus on investing in senior and subordinated real estate loans across the US, Europe and Asia-Pacific.
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The venture aims to diversify Mubadala’s real estate debt portfolio and strengthen Barings’ position as one of the world’s largest diversified real estate investment managers, with over $30bn in real estate debt assets under management.
Mubadala and Barings have a long-standing strategic relationship. In 2020, the two parties launched a joint venture focused on financing solutions for European middle-market businesses.
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“We are pleased to strengthen our partnership with Mubadala through this milestone venture,” said Mike Freno, chairman and chief executive at Barings.
“By combining Barings’ decades of experience in credit markets with Mubadala’s world-class investment platform, we are forging a powerful alliance built on collaboration and shared vision. This joint effort positions us to deliver innovative financing solutions across key global regions and seize the opportunities created by market dislocation. Together, we are excited to create resilient, long-term value for our clients and stakeholders.”
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Omar Eraiqaat, deputy chief executive, credit and special situations at Mubadala, said: “We are excited to grow our relationship with MassMutual and Barings with the launch of this new joint venture. Their impressive track record, robust origination, and strong portfolio management capabilities complement Mubadala’s existing investment strategy and enables us to further access high-quality opportunities in global real estate credit markets. Together, we are well-positioned to capitalize on market opportunities going forward, providing creative financing solutions that deliver resilient, long-term value to our stakeholders.”
