Alpha Dhabi Holding and Mubadala Investment Company have completed the acquisition of Apollo’s European direct lending portfolio, marking a significant expansion of their presence in Europe’s private credit market. The transaction strengthens the joint venture’s position as a growing regional player in alternative lending and adds substantial scale to its portfolio.
Details of the Acquisition
The acquired portfolio consists of diversified credit assets across sectors such as consumer goods, healthcare, high technology, business services, and financial services. Before the transaction, the joint venture managed around 1 billion dollars in assets. The new acquisition adds approximately 600 million dollars of high quality credit exposure, bringing the total portfolio to about 1.6 billion dollars. The number of obligors has increased from 24 to 39, reflecting a broader and more diversified asset base.
Strategic Significance
Alpha Dhabi and Mubadala consider the acquisition an important milestone in building a stronger credit investment platform in Europe. With demand for private credit rising across the region, the joint venture aims to benefit from the growing shift toward non-bank lending solutions. The investment aligns with their long term strategy to develop a robust and scalable credit platform capable of serving a wide range of European markets.
The expansion also strengthens their ability to participate in sectors that are considered essential for future economic growth, including technology, healthcare, and advanced consumer services. Leaders from both entities described the acquisition as a major step toward creating a more resilient and globally positioned credit business.
Broader Impact
The deal highlights a wider regional trend of Gulf investment firms increasing their involvement in European private credit markets. As traditional banks face regulatory pressure and companies look for alternative financing channels, private lenders have become more influential in shaping corporate funding options.
By acquiring this portfolio, Alpha Dhabi and Mubadala are positioning themselves to take advantage of these changes. The transaction reflects confidence in Europe’s long term economic prospects and signals a growing willingness among Middle Eastern investors to deploy capital in diversified international markets.