Mubadala pursues a brand strategy of credit partnerships with companies like KKR

Published on 24/10/2022

Abu Dhabi-based Mubadala Investment Company has historically forged ties with major US asset managers on credit investment platforms. Mubadala has signed a strategic partnership agreement with KKR. The firm seeks to deploy at least US$1 billion in long-term capital, providing tailored credit solutions to companies and sponsors in the Asia-Pacific region. Mubadala will deploy its capital alongside KKR’s existing capital pools, including the recently established KKR Asia Credit Opportunities Fund, a US$1.1 billion vehicle focused on performing privately-sourced credit investments in the region.

Mubadala wants to gain greater investment exposure to a growing credit market in the APAC region. The partnership allows KKR to take on more risk and expand its lending platform in the region. In the Asia-Pacific region, KKR has deployed nearly US$3 billion in credit capital since 2019. This includes acquisition financing and tailored capital solutions for companies and financial sponsors in environmental services, real estate, education, infrastructure and health. sectors. KKR Credit has made investments across APAC, including Australia, Greater China, India, Korea, Malaysia, New Zealand, Singapore and Vietnam.

In February 2022, Mubadala expanded its partnership with Apollo Management in the alternative asset manager’s capital solutions business. Mubadala’s expanded partnership builds on the Apollo Strategic Origination Partners (ASOP) platform formed in 2020, strengthening the relationship between Apollo and Mubadala.