Mubadala expands private credit to $20B with Apollo and Carlyle..

Mubadala Investment Company is expanding its private credit exposure to around $20 billion, signaling a strategic pivot toward non-bank lending and diversified capital channels. The group has deepened collaborations with global asset managers Apollo Global Management, The Carlyle Group, and KKR, aiming to lock in scalable financing with robust risk controls.

Across private markets, private credit has assumed a central role as lenders adjust to higher rates and more selective underwriting. Industry observers estimate private credit assets under management have surpassed the trillion-dollar threshold, reflecting a structural shift toward specialized lenders capable of delivering yield and resilience in uneven markets.

Speaking at the Milken Conference in Abu Dhabi, Waleed Al Mokarrab Al Muhairi emphasized diversification and disciplined risk management as the backbone of Mubadala's approach, noting that performance remains cyclical but not doomed by an imminent downturn. The remarks come as some lenders face losses in segments of the consumer and auto-finance sectors.

Mubadala's push complements its ongoing co-investment framework with major private equity platforms. By partnering with Apollo Global Management, The Carlyle Group, and KKR, Mubadala seeks to expand origination, risk analytics, and administrative capabilities across a broader mix of credit facilities and control positions.

The move signals how sovereign-backed pools are shaping private markets: they provide ballast for capital-starved mid-market borrowers and push traditional banks to reevaluate funding strategies in a higher-rate environment. For peers, Mubadala's model highlights the value of deep strategic alliances with established asset managers to finance growth while prudently managing downside risk.