Alpha Dhabi Holding has increased its financial commitment to a private credit joint venture managed by Mubadala Capital, raising its investment to $1 billion. The Abu Dhabi Securities Exchange-listed company also agreed to expand its ownership stake in MICAD Credit JV from 20 percent to 40 percent, according to a revised partnership agreement announced Tuesday.

Private credit refers to lending provided directly to companies outside of traditional bank loans or public bond markets, with investors generating returns from interest payments and fees. MICAD Credit JV currently manages approximately $1.7 billion in assets distributed across 45 portfolio companies, primarily focusing on direct lending to businesses in the United States and Europe.

The enhanced partnership will allow MICAD Credit JV to diversify its investment activities beyond current markets and sectors by leveraging Mubadala Capital’s broader international network. Alpha Dhabi’s increased involvement not only reflects a larger capital commitment but also grants the company access to a wider array of lending opportunities within Mubadala’s portfolio.

Hamad Salem Al Ameri, Managing Director and Group CEO of Alpha Dhabi Holding, characterized the move as a strategic expansion aligned with the company’s confidence in private credit as a key component of its investment strategy. “Doubling our commitment and broadening our mandate is a deliberate step — one that positions us to access a wider universe of high-quality global opportunities,” he said. Al Ameri highlighted the joint venture’s solid foundation and potential for growth, noting the current portfolio size and the anticipated opportunities ahead.

This development underscores the growing appeal of private credit as an alternative investment asset class, viewed by many institutional investors as a way to generate stable income streams and diversify portfolios amid changing global market conditions.