Mubadala Investment Company
Mubadala has been widening its presence in the Asia-Pacific territory in recent times, while its partner in the new venture, KKR, already operates a $1.1 billion Asia Credit Opportunities Fund. Image Credit: Gulf News Archive

Dubai: Abu Dhabi’s Mubadala and KKR, one of the world’s biggest investment firms, will extend up to $1 billion in ‘private credit’ opportunities in the Asia-Pacific markets. This will strengthen the UAE’s firm’s exposure in a fast growing credit market, while US-headquartered KKR already operates a $1.1 billion. dedicated Asia Credit Opportunities Fund.

“The region’s growth has fueled an enormous demand for funding solutions, as many companies, sponsors, and entrepreneurs face challenges accessing flexible financing due to limited supply of capital from banks and non-bank lenders,” said a statement. “The partnership between Mubadala and KKR aims to address this shortage of flexible capital while supporting businesses in APAC in achieving their long-term growth ambitions.”

$ 178 b

The size of assets under management by KKR Credit

“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,” said Omar Eraiqaat, Co-Head of Credit Investments at Mubadala.

In APAC, KKR has deployed nearly $3 billion in credit capital since 2019. This has included acquisition financing and bespoke capital solutions for companies and financial sponsors in environmental services, real estate, education, infrastructure, and healthcare. KKR Credit has made investments across APAC, and is part of KKR’s approximately $178 billion global credit platform.

"Alongside Mubadala, KKR will have the additional resources to materially increase the size of our investments, pursue more opportunities across Asia, and extend innovative capital solutions to meet the rising demand of borrowers," said Brian Dillard, Partner & Head of Asia Pacific Credit at KKR. "We look forward to playing an even larger role in helping to meet Asian businesses’ growing financing needs."