AlpInvest, Mubadala form new fund financing partnership

AlpInvest Partners, a leading global private equity investor and subsidiary of Carlyle, and Mubadala Investment Company have formed a new credit co-investment partnership.

The alliance is designed to provide portfolio senior fund financing on a global basis, marking a significant expansion of both firms’ investment strategies.

The partnership builds on the long-standing relationship between Mubadala and Carlyle and represents a major advancement in AlpInvest’s portfolio finance strategy, which was initially launched in 2018.

Since its inception, AlpInvest has completed approximately $4bn in portfolio fund financing transactions, solidifying its position as an early leader in the sector.

What the new partnership entails

The new co-investment partnership aims to enhance AlpInvest’s ability to offer efficient financial support to private equity managers, helping them drive value within their funds.

Mubadala’s involvement will expand its credit investment strategy into senior loans against the value of fund portfolios, complementing its existing co-investment efforts in areas such as direct lending, credit secondaries, real estate debt, infrastructure, and technology financing.

“We are pleased to expand our longstanding relationship with Carlyle through this new strategic partnership which will invest into portfolio senior fund financing, building on AlpInvest’s sector expertise to address this growing market,” said Fabrizio Bocciardi, head of Credit Investments at Mubadala.

The partnership has already completed its first investment, underlining its early success and commitment to supporting the evolving needs of private equity funds.

Michael Hacker, global head of Portfolio Finance at AlpInvest, highlighted the strategic importance of the partnership, saying, “This new partnership with Mubadala aligns with AlpInvest’s vision of creating transformative financing support for private equity funds as they continue to drive value for their limited partners.

“This is a key milestone for our Secondaries and Portfolio Finance platform and an exciting step forward in expanding our reach and capacity to meet the evolving needs of our partners within the private equity community.”

AlpInvest and Mubadala aim to optimise long-term value of funds

Both AlpInvest and Mubadala are committed to pursuing carefully constructed portfolio senior fund financings that optimise long-term value for the funds to which they lend.

The firms have fully endorsed the recent guidelines published by the Institutional Limited Partners Association (ILPA).

This strategic partnership between two globally recognised institutions underscores the growing importance of portfolio financing in the private equity sector, positioning both AlpInvest and Mubadala to capitalise on a fast-growing private debt segment.

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