Mubadala Capital’s Credit team has been investing since 2009, principally in direct lending opportunities across a variety of industries in North America and Europe. The Credit team has developed a track record in commercial lending by investing directly across different asset classes, initially through Mubadala GE Capital, a joint venture with GE Capital. Following Mubadala’s successful exit from the joint venture, the Credit team, operating as part of the Mubadala Capital platform, pursues a similar strategy with a broad group of origination partners.
Mubadala Capital’s Credit team leverages the experience accumulated by investing since 2009 in more than 500 leveraged loan transactions. The team’s investment approach involves accessing deal flow by developing and leveraging deep, focused and scalable partnerships with leading credit originators in its areas and markets of focus. The team also often utilizes structured leverage facilities to enhance returns.
Each partnership and the overall portfolio have been constructed while adhering to the following key principles:
- Access to differentiated, consistent and sustainable deal flow from best-in-class credit partners.
- Each transaction is underwritten and approved by Mubadala Capital.
- Conservative “underwrite-to-hold” cash flow-focused underwriting based on fundamental credit analysis.
- Stress testing LBO models to validate solid downside protection.
- Construction of diversified, granular portfolio of loans delivering attractive risk-adjusted returns.
- Rigorous portfolio monitoring and risk management processes.
Mubadala Capital’s Credit team currently manages a variety of credit investments mainly in senior secured, leveraged loans, with ancillary investments in structured credits, such as CLOs, and opportunistic investments in corporate loans and bonds.
Typical Investment Parameters
All sectors considered.
North America and Europe.
U.S. $15-50 million investments that complement our partners’ hold size.
Senior secured leveraged finance transactions: non-rated direct lending, unitranche loans and equity investments in CLOs.
Companies with generally less than U.S. $50 million of earnings before interest, tax, depreciation and amortization (“EBITDA”).
Debt maintenance and incurrence covenant package.
Access to flow of credit opportunities with independent credit underwriting and investment decision rights.
Lender of record with certain voting rights.