Alpha Dhabi doubles stake and investment in Mubadala joint venture to $1bn

Alpha Dhabi has doubled its investment and shareholding in a private credit joint venture with Mubadala Investment Company to $1 billion, as it seeks to expand its investment portfolio. The conglomerate has increased its capital commitment in Micad Credit JV from 20% to 40%, and its shareholding in Micad has risen from 20% to 40%.

Micad, which manages approximately $1.7 billion in assets across 45 portfolio companies, will now expand its investment horizon to include additional private credit strategies through Mubadala Capital's global relationships. The expanded partnership is seen as a strategic move by Alpha Dhabi, reflecting their confidence in private credit as a key investment pillar.

Private credit, which involves lending to companies by entities other than banks, has seen significant growth since the 2008 financial crisis and is projected to become a $5 trillion market by 2029. However, the industry has faced scrutiny recently due to high-profile bankruptcies in the US. Micad has focused on identifying and investing in attractive credit opportunities in various sectors and geographies since its inception in 2023, aiming to provide differentiated private credit opportunities through their investment capabilities and global relationships.