Mubadala has entered into a strategic partnership with peer investment firm KKR for joint investments across private credit opportunities in the Asia Pacific (APAC) region.
The partnership aims to deploy at least $1 billion of long-term capital, providing credit solutions to companies and sponsors.
Mubadala will deploy its capital alongside KKR’s existing pools of capital, including the recently raised KKR Asia Credit Opportunities Fund – a $1.1 billion vehicle-focused fund for privately originated credit investments in the APAC region.
The partnership marks a key milestone for both organisations, as it strengthens Mubadala’s exposure in the rapidly growing APAC credit market, while enabling KKR to significantly scale its APAC credit platform.
The partnership commences at a time when 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.
Mubadala and KKR partnership aims to address this shortage of flexible capital, while supporting businesses in APAC in achieving their long-term growth ambitions.
Omar Eraiqaat, co-head of credit investments at Mubadala, said expanding into the Asia Pacific region was a core pillar of the firm’s strategy as the market presented unique credit investment opportunities, driven by its rapid growth and high demand for non-bank capital.
“We are very pleased to collaborate with KKR, an experienced and high-caliber partner, and we look forward to leveraging their deep experience and capabilities in Asia Pacific to pursue credit opportunities and deliver value to our stakeholders,” he said.
Brian Dillard, partner and head of Asia Pacific credit at KKR, said alongside Mubadala, KKR will have the additional resources to materially increase the size of its investments, pursue more opportunities across Asia and extend innovative capital solutions to meet the rising demand of borrowers.
“We look forward to playing an even larger role in helping to meet Asian businesses’ growing financing needs,” Dillard said.
KKR has deployed nearly $3 billion in credit capital since 2019 in the APAC region, including for acquisition financing and capital solutions for companies and financial sponsors in the environmental services, real estate, education, infrastructure and healthcare sectors.
KKR Credit has made investments across APAC, including Australia, China, India and Korea.
The APAC credit business is part of KKR’s approximately $178 billion global credit platform.
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