Mubadala, KKR join hands to invest in private credit in Asia Pacific

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Mubadala will deploy its capital alongside KKR’s existing pools of capital. File Photo

Mubadala Investment Company and KKR, a leading global investment firm, on Monday signed a strategic partnership that will see the two firms co-investing across performing private credit opportunities in the Asia Pacific (APAC) region.

The partnership aims to deploy at least $1 billion of long-term capital, providing bespoke 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 on performing privately originated credit investments in the region.

The partnership represents 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 a 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 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. 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.” Brian Dillard, Partner & Head of Asia Pacific Credit at KKR, stated, “We are excited to strengthen our deep and longstanding relationship with Mubadala through this strategic partnership. 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. We look forward to playing an even larger role in helping to meet Asian businesses’ growing financing needs.” In APAC, KKR has deployed nearly US$3 billion in credit capital since 2019. This has included providing acquisition financing and bespoke 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, Greater China, India, Korea, Malaysia, New Zealand, Singapore, and Vietnam. The APAC credit business is part of KKR’s approximately $178 billion global credit platform.

Mubadala Investment Company, the Abu Dhabi-based sovereign investor managing a global portfolio of assets valued at $284 billion, has recently acquired a stake in Skyborn Renewables, the world’s largest private offshore wind developer, alongside Global Infrastructure Partners (GIP).

The acquisition of a 100 per cent interest in Skyborn Renewables provides GIP and co-investors, including Mubadala, with access to the largest private offshore wind developer globally with a long track record of development and an established presence in Europe and Asia Pacific.

Headquartered in Bremen, Germany, Skyborn Renewables has an offshore wind track record of more than 7GW developed to date, and a portfolio of operating and under-construction projects in Germany, France, and Taiwan. The group currently has a 30GW pipeline of high diversified offshore wind projects in various stages of development.Headquartered in Bremen, Germany, Skyborn Renewables has an offshore wind track record of more than 7GW developed to date, and a portfolio of operating and under-construction projects in Germany, France, and Taiwan. The group currently has a 30GW pipeline of high diversified offshore wind projects in various stages of development.

The investment by Mubadala also includes the acquisition of a stake in GIP’s 50 per cent interest in NY Bight Project called Bluepoint Wind, an innovative 1.6GW offshore project in the US that will provide investors with immediate access to the growing US offshore wind market.

Offshore wind is expected to be one of the fastest growing renewable energy sectors over the next 15 years, with the current 27GW installed capacity set to grow to 290GW by 2035. The forecasted growth of the offshore wind market will require annual investments of $50 billion.

Earlier Mubadala Capital, the global asset management firm and a wholly owned subsidiary of Mubadala Investment Company, one of the world’s leading sovereign investors with a $284 billion portfolio, has announced that it has acquired AOG, d/b/a TruFood Manufacturing (TruFood), in partnership with management. TruFood, a leading snack food contract manufacturer in several categories, is being acquired from funds affiliated with AUA Private Equity Partners, LLC. Financial details of the transaction were not disclosed.

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