Alpha Dhabi, Mubadala’s credit joint venture achieves $1 billion portfolio milestone

Mubadala Investment Company and Alpha Dhabi Holding PJSC have announced that their joint venture, launched in 2023, has made significant progress, establishing an investment portfolio of approximately $1 billion in the global credit sector. This achievement marks a crucial step towards the partnership's goal of deploying up to $2.5 billion by 2028, demonstrating its strong momentum and advancement.

The joint venture, located in Abu Dhabi Global Market, is primarily held by Mubadala with an 80% stake, while Alpha Dhabi holds the remaining 20%. This collaboration leverages Mubadala's long-standing strategic partnership with Apollo (NYSE: APO), one of the world's largest alternative asset managers, to gain access to high-quality private credit investment opportunities.

Since its establishment in 2023, the joint venture has focused on identifying and capitalizing on credit opportunities in industries and regions with attractive risk-adjusted returns. Mubadala's experience in credit investing dates back to 2009, with its credit investments division successfully navigating private markets through investments in global mid-sized and large companies.

Hamad Salem Al Ameri, Managing Director and Group Chief Executive Officer of Alpha Dhabi Holding PJSC, stated, "Alpha Dhabi's collaboration with Mubadala and Apollo underscores our commitment to establishing best-in-class, long-term partnerships with leading investment management firms. 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."

Omar Eraiqaat, Deputy Chief Executive Officer of Credit & Special Situations at Mubadala, stated, "This is an important milestone for our joint venture with Alpha Dhabi, which leverages our existing strategic relationship with Apollo. This achievement highlights 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 achieving the goals of our partnership." Jim Vanek, Partner at Apollo, said, "Alpha Dhabi and Mubadala are important long-term partners to Apollo. With our strength in global credit origination, we are pleased that the joint venture has reached this key milestone."

Alpha Dhabi further recognizes that credit investments, while offering significant opportunities, also carry potential risks. The group continuously refines its risk and outlook assessment methodologies to ensure optimal investment outcomes.