Abu Dhabi’s Mubadala Investment Company has partnered with AlpInvest Partners, a global private equity investor and subsidiary of US-based Carlyle, to establish a global collaboration focused on providing senior fund financing to private equity funds.

This credit co-investment agreement comes in response to increasing demand for liquidity and capital solutions within the private markets sector. The partnership will offer senior loans secured by fund portfolio values, marking a significant extension of Mubadala’s credit investment strategy. It builds upon Mubadala’s existing co-investment portfolio, which spans direct lending, credit secondaries, real estate debt, infrastructure, and technology financing.

For AlpInvest, the partnership enhances its portfolio finance strategy, which has facilitated $4 billion in transactions since its inception in 2018. According to Fabrizio Bocciardi, Mubadala’s head of credit investments, the partnership will focus on portfolio senior fund financing, leveraging AlpInvest’s expertise to address the growing demand in this market.

Mubadala, with a $302 billion portfolio spanning six continents, invests in a wide array of sectors, including aerospace, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals. As Abu Dhabi's sovereign investment arm, Mubadala continues to expand its diverse portfolio.

Recently, the company acquired a minority stake in US healthcare technology company Zelis, marking its largest healthcare investment to date. In November, it acquired a 49% stake in the oil country tubular goods business of Spanish industrial solutions firm Tubacex for $200 million.

This new partnership with AlpInvest has already completed its first investment, although specific details remain undisclosed.

Michael Hacker, AlpInvest’s global head of portfolio finance, emphasized that the collaboration supports AlpInvest’s mission to provide transformative financing solutions for private equity funds, helping them deliver value to their limited partners.

“This is a key milestone for our secondaries and portfolio finance platform and an exciting step forward in expanding our reach and capacity to meet the evolving needs of our partners within the private equity community,” said Hacker.

As of June 30, AlpInvest manages over $80 billion in assets and works with more than 500 investors. The firm has partnered with over 360 private equity managers and committed nearly $100 billion across primary fund commitments, secondary transactions, portfolio financing, and co-investments.