Private credit emerges as Mubadala’s top-performing asset over the past three years

Private credit has been Abu Dhabi sovereign wealth fund Mubadala’s top-performing asset class for three straight years, Deputy Group CEO Waleed Al Mokarrab told Bloomberg in Davos. While he did not share specific returns, he credited the fund’s success to a cautious approach: “We’ve been able to manage [private credit] well and not take too much risk.”

Mubadala has six private credit partnerships across the US, Europe, and Asia:

#1- Last November it extended its multi-bn-USD partnership collaboration with Apollo Management, focusing on private debt and equity financing.

#2- Last February, it teamed up with Goldman Sachs to co-invest USD 1 bn in private credit targeting “high-quality companies and sponsors” in the Asia-Pacific region.

#3- Mubadala established a USD 2.5 bn JV with Alpha Dhabi to co-invest in global credit last January.

#4- 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.

#5- In September 2023, the fund committed USD 1 bn to Blue Owl Capital, to support its tech lending strategy.

#6- In March 2023, it allocated another USD 1 bn to a JV with Ares Management and signed on as an anchor investor for Blue Opal Capital ’s second venture capital fund ahead of its IPO.

Mubadala isn’t alone: Sovereign wealth funds from the region are at the forefront of the private credit trend, Global SWF said, with the Abu Dhabi Investment Authority anchoring several initiatives, including Pemberton’s USD 1 bn net asset value financing strategy and a South Korean real estate credit fund managed by alternative asset manager SC Lowy. Global SWF forecasts that the UAE’s sovereign wealth funds are expected to continue to lead the trend of state-owned investors rushing into private equity and credit markets.

REMEMBER #2- Mubadala was the lead SWF investor in 2024, deploying USD 29.2 bn across 52 transactions — rising 67% y-o-y. The Abu Dhabi fund collectively manages some USD 1.7 tn in assets.

Mubadala ❤️ the US: Some 41% of Mubadala’s assets under management are based in the US. “The US is still the best risk-reward I see, globally speaking,” Al Mokarrab said. The fund is also exploring opportunities in Asia, particularly in India, Japan, and China.