Mubadala launches $500m real estate debt partnership

Abu Dhabi’s Mubadala Investment Company and US asset manager Barings have agreed to launch a $500 million real-estate debt partnership.

The move will focus on investing in senior and subordinated loans across real estate asset classes in the US, Europe and Asia-Pacific, the sovereign investor said in a statement. 

Barings, which oversees more than $30 billion in real estate debt and is a subsidiary of US life insurer MassMutual, will manage the new entity.

The venture comes against a backdrop of growing opportunities in global real estate, driven by bank retrenchment, refinancing demands and an expanding appetite for private credit. 

In April Mubadala Investment entered into a $1 billion strategic partnership with New York-based Fortress Investment Group to invest in private credit.

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Global private credit assets under management reached $1.5 trillion in early 2024 and are projected nearly to double by 2029, Reuters reported, quoting industry estimates.

A fund management company launched by Abu Dhabi-listed Aldar and Mubadala Capital, the alternative asset management subsidiary of Mubadala,  aims to raise AED3.67 billion ($1 billion) next year by targeting real estate opportunities across the Gulf.