Abu Dhabi’s Mubadala and US asset manager Barings launched a $500 million real estate debt fund to invest across the Asia-Pacific, Europe, and the US, in the latest sign of Emirati funds’ continued appetite for private credit.
The partnership aims to capitalize on banks retrenching from the real estate market at a time when many borrowers need to refinance debt. It will also diversify Mubadala’s property portfolio and boost Barings’ role as one of the world’s largest real estate investment managers.
Private credit has been Mubadala’s top performing asset class for the past three years, the sovereign wealth fund’s Deputy Chief Executive Waleed Al Mokarrab said this month. Mubadala has built up a $20 billion portfolio and formed partnerships with Apollo, Carlyle, and KKR.
Mubadala, probably the region’s most active sovereign wealth fund, separately also said it was partnering with Bain Capital to buy a US heating, ventilation, and air conditioning business.
