Mubadala Investment Company, one of Abu Dhabi's sovereign wealth funds, signed Monday a strategic partnership with New York-listed investment giant KKR to co-invest across performing private credit opportunities in the Asia Pacific (APAC) region.
The partnership will deploy at least $1 billion of long-term capital, aiming to provide bespoke credit solutions to companies and sponsors, Emirates News Agency (WAM) reported.
The partnership will also address the shortage of flexible capital while supporting businesses in APAC in achieving their long-term growth ambitions. It is expected to strengthen Mubadala’s exposure in the region and enable KKR to scale its APAC credit platform.
"Expanding into the Asia Pacific region is a core pillar of our strategy as this market presents unique credit investment opportunities, driven by its rapid growth and high demand for non-bank capital," Omar Eraiqaat, Co-Head of Credit Investments at Mubadala, said in a statement.
The partnership takes place at a time when the region's growth has fueled an enormous demand for funding solutions, the statement highlighted.
Mubadala will deploy its capital alongside KKR's existing pools of capital, including the recently-raised $1.1 billion vehicle, KKR Asia Credit Opportunities Fund.
KKR has deployed nearly $3 billion in credit capital in the APAC region since 2019. This includes providing acquisition financing and bespoke capital solutions for companies and financial sponsors in the environmental services, real estate, education, infrastructure, and healthcare sectors.
Australia, Greater China, India, Korea, Malaysia, New Zealand, Singapore, and Vietnam are among the countries in the APAC region that KKR Credit has made investments in.
