Abu Dhabi’s Mubadala Investment Company and AlpInvest Partners, a global private equity investor and a subsidiary of US-based Carlyle, have established a new global partnership aimed at providing senior fund financing to private equity funds.
The establishment of a credit co-investment agreement comes as demand for liquidity and capital solutions rises within the private markets sector.
The collaboration will offer senior loans secured against the value of fund portfolios, marking a significant expansion of Mubadala’s credit investment strategy. It builds on its existing portfolio of co-investments in areas like direct lending, credit secondaries, real estate debt, infrastructure and technology financing.
For AlpInvest, the partnership strengthens its portfolio finance strategy, which has already allowed $4 billion in transactions since its launch in 2018.
The new partnership will invest into portfolio senior fund financing, building on AlpInvest’s sector expertise to address this growing market, said Fabrizio Bocciardi, head of credit investments at Mubadala.
Mubadala’s $302 billion portfolio spans six continents with interests in multiple sectors including aerospace, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals sectors.
Mubadala, which invests on behalf of the Abu Dhabi government, is expanding its portfolio in various sectors.
Last week, the company agreed to acquire a minority stake in US healthcare technology company Zelis, marking the Abu Dhabi sovereign investment arm's largest deal in the healthcare sector even as it focuses on investments in Asia. In November, it acquired a 49 per cent stake in the oil country tubular goods business of Spanish industrial solutions firm Tubacex for $200 million.
Its latest partnership with AlpInvest has already completed its first investment, the entities said without disclosing further details.
The collaboration will aid AlpInvest’s vision of creating transformative financing support for private equity funds as they continue to drive value for their limited partners, said Michael Hacker, global head of portfolio finance at AlpInvest.
“This is a key milestone for our secondaries and portfolio finance platform and an exciting step forward in expanding our reach and capacity to meet the evolving needs of our partners within the private equity community,” Mr Hacker said.
With more than $80 billion of assets under management and more than 500 investors as of June 30, AlpInvest has invested with over 360 private equity managers and committed about $100 billion across primary commitments to private equity funds, secondary transactions, portfolio financing and co-investments.