- A strategic partnership has been signed by Mubadala Investment Company and KKR, a well-known global investment firm.
- Through the partnership, the two companies will co-invest in performing private credit opportunities in the Asia Pacific region. The partnership seeks to offer businesses customized loan solutions worth at least $1B in long-term capital deployment.
- According to Mubadala's co-head of credit investments Omar Eraiqaat, A key component of Mubadala’s strategy is to expand into the Asia Pacific region because of the market's distinctive credit investment prospects, which are fuelled by its rapid expansion and significant demand for non-bank capital. The firm expects to utilize KKR’s expertise and resources in Asia to pursue credit opportunities and provide value to our stakeholders.
Why it matters
The partnership is a significant turning point for both businesses as it allows KKR to develop its APAC lending platform while enhancing Mubadala's position in the APAC loan market. Both businesses say that the partnership comes at a time when there is a huge demand for alternative sources of funding in a region that is experiencing rapid expansion but has difficulty obtaining flexible financing due to the scarcity of capital from banks and other lenders.
