Mubadala Investment Company has partnered with Barings to launch a $500m global real estate debt partnership. Moreover, the initiative expands both firms’ exposure to private credit opportunities across major international markets.
Mubadala will invest alongside MassMutual, Barings’ parent company. Therefore, the joint venture will be managed by Barings and builds on a long-standing strategic relationship between the partners. Additionally, the platform is designed to deliver real estate credit solutions across the US, Europe, and Asia-Pacific.
Structure and investment focus
The joint venture will invest in senior and subordinated real estate loans across multiple asset classes. As a result, it will draw on Barings’ real estate debt platform, which manages more than $30bn in assets, supported by global origination capabilities and sector experience.
The partnership aims to diversify Mubadala’s real estate debt portfolio. Meanwhile, it also reinforces Barings’ position as a large diversified real estate investment manager with global reach.
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 of 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 backdrop
The launch comes amid shifting conditions in global real estate markets. Consequently, bank retrenchment, rising refinancing needs, and increased investor appetite for private credit are creating opportunities for alternative lenders.
The partners said these dynamics support demand for flexible financing solutions. Therefore, the joint venture is positioned to address market gaps while targeting long-term value creation.
