Mubadala to launch $1bn credit investment JV with US firm

Abu Dhabi-based wealth fund Mubadala has further expanded its journey into the credit markets by teaming up with a US-based alternatives firm Ares Management Corporation.

The two organisations have formed a joint venture (JV) that will invest in global credit secondaries opportunities.

The vehicle will initially aim to invest US$1 billion in order to capitalise on what both Mubadala and Ares anticipate will be a growth in demand among general and limited partners for “customised liquidity solutions for the credit secondaries asset class”.

The JV will be led by Dave Schwarz, partner and head of credit in the Ares Secondaries Group.

Ares and Mubadala worked together before having formed a strategic alliance in 2017 to invest in the credit market.

“Private credit has become a relevant and important part of institutional portfolios which has led to the growth and development of the private credit secondaries industry,” said Fabrizio Bocciardi, the head of credit investments at Mubadala.

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