00:00But turning to the region again, Abu Dhabi's Mubadala is opening up one of its largest investment businesses to outside
00:07investors for the first time.
00:09The Wealth Fund is transferring a $25 billion credit portfolio to its alternative asset manager Mubadala Capital.
00:17This comes as part of a long-term management agreement that will allow the platform to start raising third-party
00:23capital.
00:25Bloomberg's Dinesh Nair has been following the story for us.
00:29Dinesh, good to have you on.
00:31Can you give us a little bit more details about the deal and what ensues?
00:35Yeah, so Mubadala is one of Abu Dhabi's largest sovereign wealth funds, and they've been running a credit business within
00:42the sovereign wealth fund for more than 15 years.
00:45What they're doing now is essentially transferring the management of that business into its alternative asset management unit, Mubadala Capital.
00:52The significance of this move is that it allows Mubadala broadly and Mubadala Capital to go out and raise money
01:01for its credit business from external investors.
01:04When the business was with the parent Mubadala, it operated within a sovereign wealth fund platform, which meant it didn't
01:10raise third-party money.
01:11And now it has the ability to do that as part of the agreement with Mubadala Capital.
01:15And so why is it doing that now, the timing question?
01:19Why is that happening now?
01:21Yeah, the timing is quite interesting because we've all read a lot of negative headlines across the private credit industry.
01:29But I think, you know, speaking to some of the senior executives at Mubadala Capital, I think they believe that
01:34the long-term fundamentals of the industry is still very intact.
01:39You know, a lot of what we saw in the private credit market has been retail money redemptions, you know,
01:45whereas institutional investors and the most sophisticated investors like Mubadala, who have a very long-term view of the sector,
01:52are quite bullish.
01:53And so what they're doing is essentially doubling down on private credit at a time when the world seems to
01:58be a bit more negative, you know, sentimentally to the sector.
02:03So they're essentially doubling down and allowing their third-party unit to raise money for the business.
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