Mubadala and Barings launch $500m global real estate debt partnership

Mubadala Investment Company, the Abu Dhabi-based sovereign investor, has partnered with global investment manager Barings to launch a $500m global real estate debt partnership, strengthening both firms’ exposure to private credit opportunities across major international markets.

Mubadala will invest alongside MassMutual, Barings’ parent company, while the joint venture will be managed by Barings.

The partnership builds on a long-standing strategic relationship between Mubadala and Barings and is designed to deliver innovative real estate credit solutions across the US, Europe and Asia-Pacific.

Mubadala and Barings real estate partnership

The joint venture will invest in senior and subordinated real estate loans across multiple real estate asset classes. It will leverage Barings’ platform of more than $30bn in real estate debt assets under management, supported by the firm’s global footprint, origination capabilities and track record in the sector.

The partnership aims to further diversify Mubadala’s real estate debt portfolio while reinforcing Barings’ position as one of the world’s largest diversified real estate investment managers.

Omar Eraiqaat, Deputy CEO, Credit and Special Situations at Mubadala, said: “We are excited to grow our relationship with MassMutual and Barings with the launch of this new joint venture. Their impressive track record, robust origination, and strong portfolio management capabilities complement Mubadala’s existing investment strategy and enables us to further access high-quality opportunities in global real estate credit markets.

“Together, we are well-positioned to capitalize on market opportunities going forward, providing creative financing solutions that deliver resilient, long-term value to our stakeholders.”

Mike Freno, Chairman and CEO, Barings, said: “We are pleased to strengthen our partnership with Mubadala through this milestone venture. By combining Barings’ decades of experience in credit markets with Mubadala’s world-class investment platform, we are forging a powerful alliance built on collaboration and shared vision.

“This joint effort positions us to deliver innovative financing solutions across key global regions and seize the opportunities created by market dislocation. Together, we are excited to create resilient, long-term value for our clients and stakeholders.”

Market opportunity

The launch comes amid heightened opportunity in global real estate markets, driven by bank retrenchment, increased refinancing requirements, and growing investor appetite for private credit.

The partners said these conditions are creating favourable dynamics for alternative lenders capable of providing flexible and creative financing solutions.