Abu Dhabi Investment Authority (ADIA) will up its commitment to London-based alternative asset manager Cheyne Capital’s capital solutions strategy to GBP 650 mn (USD 831 mn), Bloomberg reports, citing a statement. The exact size of the new investment was not disclosed.

About the strategy: Cheyne’s capital solutions fund offers senior loans against European real estate, intending to transition Europe’s property market “away from increasingly obsolete assets supported by low interest rates,” says Ravi Stickney, managing partner and chief investment officer of Cheyne's real estate arm. The strategy also grants borrowers subordinated debt, hybrid credit, and commercial mortgage-backed securities.

What they said: “We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital,” ADIA real estate department’s executive director, Mohamed Al Qubaisi, said.

ADIA ❤️ private credit: ADIA previously ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments.

And it’s not just ADIA: In February, sovereign wealth fund Mubadala agreed with Goldman Sachs to co-invest USD 1 bn in private credit in the Asia-Pacific region, with a particular focus on India. The wealth fund also took on the role of anchor investor for a private credit fund set up by Starz Real Estate and targeting European property in November 2023.

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