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The Abu Dhabi Investment Authority (ADIA) is pouring USD 1 bn into Barclays and AGL Credit Management’s new private credit fund, Bloomberg reports, citing a source familiar with the matter. With Adia’s backing, the fund now holds more than USD 2 bn of dry powder ready for deployment. The three firms declined to confirm the exact size of the investment.
ADIA and AGL go way back: Founded in 2019, AGL was launched with a USD 500 mn investment from Adia, making the sovereign wealth fund a shareholder in the credit investment firm.
ADIA is stepping up its private credit investments: ADIA recently said it is ramping up its commitment to London-based alternative asset manager Cheyne Capital’s capital solutions strategy to GBP 650 mn, as a “compelling investment proposition in a market that is looking to private credit lenders for capital,” Executive Director of ADIA’s real estate department Mohamed Al Qubaisi said. ADIA previously ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments.
About the vehicle: The private credit fund will operate as an independent manager with a primary focus on investments in senior secured debt and offering private credit financing to major corporate borrowers, Bloomberg reports, citing a statement it has seen. The fund will give AGM “complete control” over origination, asset selection, portfolio construction and portfolio management .
AGM will hold full control under an agreement with Barclays, which will give AGL access to all of Barclays’ entire private credit portfolio. The agreement will allow AGL to choose to participate in the credit financing transactions, which will help AGL “benefit from more information than other pure-play direct lenders and asset managers,” AGL Chief Executive Peter Gleysteen told Bloomberg.
