Abu Dhabi’s Mubadala Partners with Carlyle’s AlpInvest to Offer Loans to Private Equity Firms
Abu Dhabi’s sovereign wealth fund, Mubadala, has teamed up with Carlyle’s AlpInvest Partners, a US-based firm, to provide loans to private equity funds, according to a statement released on Wednesday.
Focus on Loans
The partnership will focus on providing senior loans backed by the value of private equity fund portfolios. This allows private equity firms to access cash while reducing risk by using their portfolios as collateral.
This move is part of Mubadala’s plan to diversify its credit investments and support the changing needs of private equity fund managers, the companies said.
AlpInvest, which has facilitated $4 billion in transactions since 2018, will also gain more capacity to offer customized financial solutions to private equity firms.
For Mubadala, this step expands its presence in the growing private debt market. It fits well with its other investments in areas like direct lending, credit secondaries, real estate, infrastructure, and technology financing.
The partnership has already made its first investment, according to the statement.
Big Commitments
Mubadala, an investment company for the Abu Dhabi government, is expanding its investments into many different areas.
The company puts money into fast-growing industries like artificial intelligence (AI), semiconductors, and financial technology (fintech). It also supports healthcare innovations, builds infrastructure, and invests in renewable energy alongside traditional energy sources.
In October, Mubadala’s investment branch, Mubadala Capital, announced the closure of its fourth private equity fund, called MIC Capital Partners IV (Fund IV). The fund raised $3.1 billion, exceeding its $2 billion goal.
Fund IV received money from new and existing partners, including U.S. pension funds, university endowments, insurance companies, sovereign wealth funds, other investment firms, and family offices around the world.
Earlier this year, Mubadala made key investments:
- In March, it became a major backer of Blue Opal Capital’s second venture fund.
- In February, it signed a $1 billion deal with Goldman Sachs to co-invest in private credit in the Asia Pacific region.
Big Numbers
Mubadala manages a portfolio worth $302 billion. Its investments span six continents and include industries like aerospace, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals.
Published: 12th December 2024
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