Mubadala-owned Invest AD and Blackstone launch first 'private debt fund'

Dubai: A Mubadala Investment Co. owned entity Invest AD has launched a private debt fund in alliance with the global fund manager Blackstone.

The new fund will offer ‘local feeder services’ to Blackstone’s US and European private credit strategies.

“We are proud to launch the UAE’s first global private credit fund of funds vehicle for professional investors," said Mohammad Behzad Saleemi, CEO of Invest AD. 

The ‘Invest AD Blackstone Private Debt Fund’ thus lays claim to be the first global private credit ‘fund of funds’ platform for professional investors in the UAE. This follows the UAE’s SCA coming up with regulatory announcements in January last.

“The launch broadens access to an asset class that has historically only been primarily accessible to institutional investors,” said a statement issued by Invest AD.

Amidst an environment of higher interest rates, there are some good debt plays - existing and in the pipeline - that could interest investors with longer term horizons. Blackstone Credit has ‘significant experience investing in the private credit space’, and make ups over half of Blackstone Credit and Insurance’s $295 billion platform.

Part of the New York headquartered Blackstone Inc., the credit arm invest mostly in senior secured debt of bigger private US and European companies. "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,” said Rashmi Madan, Head of EMEA for Blackstone Private Wealth Solutions.