Sovereign Wealth Fund’s Winning Streak
Mubadala Investment Co., Abu Dhabi’s sovereign wealth fund, has achieved an impressive three-year winning streak with private credit as its top-performing asset class. This remarkable feat was revealed by Waleed Al Mokarrab, the fund’s deputy group chief executive officer, in a recent Bloomberg Television interview at Davos.
Managing Risk, Achieving Returns
Al Mokarrab attributed their success to effective risk management, stating, “We’ve been able to manage that well and not take too much risk.” As a result, they have enjoyed “pretty good returns” over the past two to three years, although specific details were not disclosed.
Diversified Private Credit Partnerships
Mubadala has established six private credit partnerships across the US, Europe, and Asia, fostering relationships with prominent players like Apollo Global Management Inc. and Blue Owl Capital. This strategic move has enabled the $330 billion entity to tap into diverse markets and opportunities.
Global Ambitions
As one of the three main wealth funds in the oil-rich emirate, Mubadala controls a staggering $1.7 trillion in assets alongside its peers. In 2024, it deployed an impressive $29.2 billion, earning the title of the world’s most active sovereign investor, according to Global SWF.
Bullish on the US Market
With 41% of its assets under management located in the US, Mubadala remains optimistic about the market’s prospects, particularly with Donald Trump’s return to the White House. Al Mokarrab emphasized, “The US is still the best risk-reward I see, globally speaking.”
Asian Opportunities
Beyond the US, Al Mokarrab sees promising opportunities in Asia, specifically in markets like India, Japan, and China. This forward-thinking approach positions Mubadala for continued growth and success in the region.
A Sovereign Investor’s Perspective
As Mubadala continues to navigate the complex global investment landscape, its commitment to private credit and strategic partnerships has yielded impressive results. With its sights set on the US and Asian markets, this sovereign wealth fund is poised for continued success in the years to come.
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