Abu Dhabi wealth fund Mubadala Investment Co. has formed a strategic partnership with private credit heavyweight Blue Owl Capital, committing $1 billion to the firm’s credit platform.
(Bloomberg) — Abu Dhabi wealth fund Mubadala Investment Co. has formed a strategic partnership with private credit heavyweight Blue Owl Capital, committing $1 billion to the firm’s credit platform.
The investment will initially go toward Blue Owl’s technology lending strategy, which provides financing to technology and software companies, according to a Monday press release.
The deal marks one of the largest commitments to Blue Owl’s technology lending strategy so far, said a person familiar with the matter, asking not to be identified as the details are private. It’s also Mubadala’s first investment in Blue Owl and comes as Middle Eastern sovereign wealth funds look to diversify away from energy, with particular appetite for US investments and the technology sector, added the person.
“Private credit has become an integral part of the financing solutions available to support corporate growth,” said Fabrizio Bocciardi, head of Credit Investments at Mubadala, in the release.
“There is an increasing demand for debt capital from well-established and high-growth software and technology businesses, which typically have leading market positions, resilient customer base and strong financial fundamentals,” he continued. “As a leader in the technology lending space, Blue Owl is well-positioned to capitalize on both current and future opportunities.”
Blue Owl is one of the largest players in the private credit market. Some of its most recent deals include a $2.65 billion debt package to support Francisco Partners and TPG Inc.’s acquisition of New Relic Inc. as well as a $2.7 billion financing to help fund BradyIFS’s acquisition of Envoy Solutions.
(Corrects commitment size in third paragraph.)
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