The joint venture investments amount to 9 billion dirhams

Alpha Abu Dhabi and Mubadala sign an investment partnership in global credit opportunities

Mubadala will own an 80% stake in the joint venture.

Photography: Eric Arazas

Alfa Abu Dhabi Holding Company and Mubadala Investment Company announced the establishment of a joint venture to invest in private credit opportunities.

Yesterday's statement stated that the two parties aim through this step to invest up to nine billion dirhams (about 2.5 billion dollars) over the next five years, and to benefit from the long-term strategic partnership of "Mubadala" with the American company "Apollo" listed on the New York Stock Exchange, which One of the world's largest alternative investment management firms, investing in high quality private credit opportunities.

Under the partnership, Mubadala will own an 80% stake in the joint venture, which is based in the Abu Dhabi Global Market, while Alfa Abu Dhabi will own the remaining 20%.

"We continue to closely evaluate investment opportunities in the private credit market, especially in light of the current global market environment characterized by constant fluctuations," said Eng. Hamad Salem Al-Amiri, CEO and Managing Director of Alpha Abu Dhabi Holding Company.

He added, "Both (Mubadala) and (Apollo) have extensive experience in this field, and we will work together through this partnership to meet the demand in global markets for alternative investment options of liquidity and credit solutions."

For his part, Hani Barhoush, CEO of the non-traditional investment sector in Mubadala, said that the partnership with "Alpha Abu Dhabi" is an important step for "Mubadala", at a time when private credit markets around the world are witnessing significant growth.

He continued: «By benefiting from our close relationship with (Apollo), the investment experience and strong financial solvency of (Mubadala) and (Alfa Abu Dhabi), we were able to establish a strong platform that provides access to investment opportunities around the world, and at the same time promotes integration on The level of the vital investment system in Abu Dhabi.

In turn, partner in "Apollo" and head of the company's financing solutions platform, Craig Farr, said: "We are pleased to continue building our close relations with (Mubadala) and (Alfa Abu Dhabi), and to form one team at a time when private markets are an excellent destination for investment in light of the challenges." in the public markets.

Rewarding returns

Investment in private credit continues to gain growing momentum at the regional level, and is considered a way to achieve attractive returns for investors, given that it provides effective protection against price fluctuations or market risks.

Investing in this field is of particular importance in light of the current general operating environment, in conjunction with high interest rates and the pressures resulting from high inflation rates.

Private credit investments are well positioned to perform well across market cycles, despite the current volatility and uncertainty in global markets.

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