Mubadala and Barings launch $500mn real estate debt partnership

Mubadala Investment Company, Abu Dhabi sovereign investor, has launched a new US$500 million global real estate debt partnership with Barings, one of the world’s leading investment managers, and a subsidiary of MassMutual.

Barings will manage the joint venture, which will combine its extensive expertise in real estate debt with Mubadala’s global investment platform to deliver innovative credit solutions across the US, Europe, and Asia-Pacific. Mubadala will invest alongside MassMutual in the fund.

Barings’ platform comprises over US$30 billion in real estate debt assets under management. The partnership will build on a long-standing strategic relationship between Mubadala and Barings. It will also diversify Mubadala’s real estate debt portfolio and strengthen Barings’ position as one of the world’s largest diversified real estate investment managers.

The partnership will focus on investing in senior and subordinated real estate loans across real estate asset classes.

Omar Eraiqaat, Deputy CEO, Credit and Special Situations at Mubadala, commented: “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 capitalise on market opportunities going forward, providing creative financing solutions that deliver resilient, long-term value to our stakeholders.”

Mike Freno, Chairman & CEO, Barings, added: “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.”