Invest AD and Blackstone launch private debt fund

The Abu Dhabi Investment Company (Invest AD), a subsidiary of sovereign wealth fund Mubadala, and private equity giant Blackstone have partnered for the launch of a private debt fund in Abu Dhabi.

The Invest AD Blackstone Private Debt Fund will be regulated by the Securities and Commodities Authority in Abu Dhabi.

According to the two firms, the fund is the first global private credit fund of funds vehicle for professional investors to be launched in the UAE since the SCA amended the regulations at the beginning of 2023 to allow private credit funds.

The rule change was designed to broaden access to an asset class that has typically been exclusive to professional investors.

“We are seeing strong demand for private credit today,” said Rashmi Madan, head of Emea for Blackstone Private Wealth Solutions. “We believe the current double-digit yields we’re seeing in the asset class present a compelling opportunity for returns similar to that of historical equity performance, while taking senior secured risk.”

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