Mubadala and Carlyle launch partnership

• Mubadala and Carlyle offer debt
• Portfolio senior fund financing
• Secured against underlying assets

Abu Dhabi sovereign fund Mubadala and a subsidiary of US investment firm Carlyle have launched a partnership to lend to private equity companies worldwide.

Mubadala, which has $302 billion in assets under management, and AlpInvest Partners have already completed their first deal, according to a statement by the Abu Dhabi institution.

The partnership will provide “portfolio senior fund financing”, which means it will lend to private equity firms.

This borrowing is secured against the underlying assets in the borrower’s private equity funds. As senior debt, it would get priority over other, more junior creditors should the borrower fall into financial difficulties.

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“For Mubadala, expanding its credit investment strategy into senior loans against the value of fund portfolios is an extension into a fast-growing private debt segment,” the statement says.

Mubadala also has co-investment partnerships to lend to real estate, infrastructure and technology companies.

Carlyle has $447 billion in assets under management, spanning 612 investment vehicles, according to its website. Carlyle’s subsidiary AlpInvest Partners has $80 billion in assets under management and claims to be one of the largest private equity investors worldwide.