Abu Dhabi’s Mubadala Investment Company has entered into a $500 million global real estate debt partnership with US asset manager Barings, as large institutional investors seek to capture opportunities in private credit amid tight bank lending and refinancing pressures.
Abu Dhabi’s sovereign wealth fund, which has around $330 billion assets under management, will invest alongside MassMutual, Barings’ parent company, the companies said on Monday.
The joint partnership will be managed by North Carolina-based Barings, which has more than $470 billion of assets under management, and will focus on senior and subordinated real estate loans across asset classes in the US, Europe and Asia-Pacific, they said.
“Mubadala’s existing investment strategy enables us to further access high-quality opportunities in global real estate credit markets,” said Omar Eraiqaat, deputy chief executive for credit and special situations at Mubadala.
Barings chief executive and chairman Mike Freno said the platform is aimed at seizing “opportunities created by market dislocation”.
Real estate debt has become an increasingly attractive asset class for large institutional investors seeking predictable income and downside protection, particularly amid volatility in equity and traditional fixed income markets.
Sovereign wealth funds, including Mubadala, have been expanding their exposure to private credit in recent years, targeting strategies such as direct lending and real asset-backed finance as part of broader portfolio diversification.
Barings and Mubadala previously partnered in 2020 to set up a platform providing funding to mid-market European companies. The companies set up Barings Mubadala Enterprise to provide up to $3.5 billion (Dh12.84 billion) of flexible capital for European corporates.
The new partnership between the companies comes at a time of significant opportunity in global real estate markets, driven by refinancing demands and a growing appetite for private credit, they said.
Mubadala has stepped up efforts to tap institutional investors with appetite for property deals in the region.
At last week's Abu Dhabi Finance Week, Mubadala's chief executive for real assets, Khaled Al Marri, told The National that the wealth fund is keen to make a strategic shift towards global transport infrastructure, although it acknowledged regulatory bottlenecks and limited availability of high-quality opportunities.
This month, Mubadala Capital and Abu Dhabi's Aldar Properties and announced the launch of an investment management platform to connect global institutional investors with real estate and infrastructure opportunities in the UAE and Gulf.
Based in Abu Dhabi's ADGM, Aldar Capital will offer professionally managed funds to institutional investors, including sovereign wealth funds, pension funds, insurers, fund of funds and family offices. Its first fund, set to launch in 2026, will target $1 billion in investments.
Also last week, the joint venture between Mubadala and Alpha Dhabi Holding announced the acquisition of a European direct-lending portfolio managed by US asset management firm Apollo Global Management, strengthening their credit investment platform.
Mubadala also closed a US natural gas investment agreement in August, acquiring a stake in Kimmeridge’s SoTex HoldCo, marking its first significant investment in the US energy market.
Barings, which was founded in 1762, operates across public fixed income, capital solutions and real assets, with more than 2,000 investment professionals across North America, Europe and the Asia-Pacific, according to its website.
In 2024, Barings opened its Dubai office as part of a long-term strategy to meet growing demand and serve its client base in the Middle East.
