SWFs hot for direct lending as recession strikes Europe

By Silas Brown
24 Sep 2020

Sovereign wealth funds from Abu Dhabi and Qatar have started to take ownership positions in new direct lending platforms in Europe and the US. But as Western economies plough into a deep recession, while rival investors still sit on barrels of dry powder, the wealth funds' decision to push into middle market credit now is surprising.

Mubadala and Barings this week announced a $3.5bn direct lending collaboration, aimed at Europe’s ailing mid-market. Mubadala is the anchor investor in the initiative, with MassMutual and its subsidiary Barings also investing in the new entity.

"This partnership will leverage our significant capabilities in origination and alternative credit, to ...

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