Mubadala Investment Company has entered into a new global real estate debt partnership with Barings, the international investment manager and a subsidiary of MassMutual, in a deal valued at $500 million.
The two organisations announced that the new joint venture will see Mubadala invest alongside MassMutual, with Barings responsible for managing the platform. The partnership is designed to deliver real estate credit solutions across key markets in the United States, Europe and Asia-Pacific.
According to the companies, the venture brings together Barings’ experience in real estate debt investing with Mubadala’s global investment reach. It also builds on an established strategic relationship between Mubadala and Barings, with the aim of expanding Mubadala’s real estate debt exposure while reinforcing Barings’ standing in the sector.
The joint venture will invest in both senior and subordinated loans across a broad range of real estate asset classes. It will draw on Barings’ existing real estate debt platform, which manages more than $30 billion in assets globally and operates across multiple regions.
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 the partnership marks an important step for both firms. He 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.”
The announcement comes at a time of heightened activity in global real estate debt markets. Factors such as reduced bank lending, refinancing pressures and increased interest in private credit are creating opportunities for alternative capital providers, the companies said.
