Alpha Dhabi Holding PJSC and Mubadala Investment Company announced the formation of a joint venture to co-invest in credit opportunities. Alpha Dhabi and Mubadala aim to collectively deploy up to ~AED 9 billion (approximately USD 2.5 billion) over the next five years, leveraging Mubadala's long-term and strategic partnership with Apollo, one of the world's largest alternative asset managers, to access high-quality private credit investment opportunities. Mubadala will hold 80% ownership in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20% to be held by Alpha Dhabi.

Allocations to the private credit asset class have continued to gain traction and increase regionally and are seen as a route to generate strong returns while providing effective downside protection. This is particularly pertinent in the context of the current operating macroenvironment with rising interest rates and inflationary pressures. Private credit investments are well placed to perform across market cycles, despite the current uncertain and volatile global capital markets landscape.