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Abu Dhabi sovereign wealth funds Mubadala and the Abu Dhabi Investment Authority are ramping up investments in the private credit sector as it continues to gain traction amid a persistent environment of heightened interest rates and increased scrutiny on banks.
#1- Adia anchors AlbaCore’s USD 1.8 bn European lending strategy: An Abu Dhabi Investment Authority (Adia) subsidiary is anchoring AlbaCore Capital Group’s newly launched senior direct lending strategy, alongside Mitsubishi UFJ Trust and Banking Corporation (Trust Bank), according to a press release. The European alternative credit firm said it secured USD 1.8 bn in commitments at first close, without disclosing the breakdown of investments it received from the two anchor investors.
The details: The strategy focuses on providing senior private loans to upper-mid and large-cap European corporates, prioritizing downside protection and risk-adjusted returns.
#2- Mubadala invests in US real estate lender: Abu Dhabi sovereign wealth fund Mubadala, alongside the California State Teachers’ Retirement System (CalSTRS), will invest USD 215 mn in US alternative commercial real estate lender 3650 Capital, according to a statement. Both Mubadala and CalSTRS invested previously in the lender, but it was not clear how much each party reinvested in the latest capital injection.
What’s next? The fresh funds will be deployed across 3650’s three investment strategies, which offer long-term and fixed-rate financing, short-term and value-add financing, and single asset-single borrower and transitional loans. Alternative capital providers are able to offer more options “to commercial real estate projects while banks remain retrenched,” 3650’s cofounder Toby Cobb said.
Adia and Mubadala are both active investors in private credit: Adia invested USD 200 mn in Australia’s Qualitas Diversified Credit Investments last June, USD 831 mn in UK-based Cheyne Capital, and USD 1 bn in Barclays and AGL Credit Management’s joint fund. It also served as an anchor investor for Pemberton’s USD 1 bn financing strategy and a South Korean credit fund. Mubadala, on the other hand, has identified private credit as its top asset class for three consecutive years, with private credit investments and partnerships across the US, Europe, and Asia, including a mult-bn USD partnership with Apollo, a USD 1 bn partnership with Goldman Sachs, and a USD 2.5 bn JV with Alpha Dhabi.
The bigger picture: According to BlackRock’s 2025 outlook, private markets are playing an increasingly critical role in financing the global economy. While public markets will help address rising infrastructure demands, private capital is expected to dominate early-stage AI development and fill lending gaps as banks pull back, with private credit in particular set to gain market share.
