Mubadala new
Mubadala is venturing into a relatively new territory for itself - mid-market European firms in need of flexible finance options. Image Credit: Gulf News Archive

Dubai: Mubadala has partnered Barings, the financial services firm, to launch a new company that will provide financing solutions to mid-market businesses in Europe. The Barings Mubadala Enterprise (BME) and its capital partners aim to provide $3.5 billion in financing over the next 18 months.

BME will focus particularly on opportunities in the United Kingdom, France, Benelux and the Nordics. Waleed Al Mokarrab Al Muhairi, Mubadala’s Deputy Group CEO and CEO of Alternative Investments & Infrastructure said: “Mubadala has a long history of establishing strong, value-creating partnerships with leading global organizations. The partnership with Barings is consistent with this approach."

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The partners reckon there is "growing corporate demand for flexible capital solutions" in Europe. The partnership is anchored by Mubadala Investment Company (Mubadala) and will invest alongside MassMutual and Barings’ capital. 

Barings’ Chairman and CEO, Tom Finke, said: “This partnership will leverage our significant capabilities in origination and alternative credit to help strategic capital partners such as Mubadala invest with scale. We are looking to take advantage of middle-market direct lending opportunities, focusing on senior secured loans as borrowers shift focus from traditional bank financing to institutional capital providers to fund acquisitions and growth projects.”

Another European alliance
Mubadala Investment Company has also entered an agreement with Sberbank, the largest bank in Eastern and Central Europe, to "explore opportunities of mutual benefits".
The agreement covers cooperation in co-investments, debt and equity financing, long-term financing of Mubadala projects in Russia and other territories, advisory services, and hedging FX and credit risks.
The agreement also paves the way for potential cooperation in areas such as artificial intelligence, cybersecurity, life sciences, venture capital, Islamic finance, telemedicine and education.
Sberbank and Mubadala are jointly developing a roadmap outlining engagement and cooperation plans across these verticals.