Mubadala Investment and BlackRock ended their Asia-focused private credit partnership, citing challenges in sourcing transactions, sources familiar with the matter told Bloomberg. The partnership, which focused on investments in China and Indonesia, deployed a limited amount of capital since its launch in 2023.

What went wrong? In China, the partnership struggled to source transactions that met its target return profile—reportedly in the mid-teens. In Indonesia, progress was hindered by the departure of Christopher Ganis, BlackRock’s head of private credit, who left to join the Indonesia Investment Authority early on during the partnership. More uncertainty followed with the recent exit of Celia Yan, BlackRock’s head of Asia-Pacific private credit, who joined Apollo.

Mubadala is still bullish on Asia-Pacific investments: The sovereign investor last year formed a USD 1 bn private credit partnership with Goldman Sachs, and has committed funds to PAG’s renewable energy fund PAG REN I, and India’s Manipal Health Enterprises. These moves are part of Mubadala’s broader plan to more than double its exposure to Asia, aiming to raise the region’s share of its portfolio to 25% from 12%.

What’s next? UAE sovereign funds continue to eye APAC investments. Mubadala is expected to be a cornerstone investor in the upcoming IPO of Hong Kong’s FWD Group Holdings, while the Abu Dhabi Investment Authority is reportedly exploring stakes in India’s education loan provider HDFC Credila Financial Services and telco Vodafone Idea.

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