Mubadala buys 42pc share in LA-based credit manager
Abu Dhabi’s Mubadala Capital has agreed to acquire a 42 per cent stake in Los Angeles-based credit investment specialist Silver Rock Financial.
As part of the deal, Mubadala will eventually commit more than $1bn (£0.78bn) to Silver Rock. There will also be an option for Mubadala to increase its share in the firm to 50 per cent over time.
Carl Meyer will remain as chief executive and chief investment officer at Silver Rock, following the completion of the deal in early 2025.
Read more: Apollo launches Mubadala-backed private credit fund
Silver Rock is backed by the family office of junk bond billionaire Michael Milken. The Financial Times has reported that Mubadala will take in an investment from Milken’s family office, representing the first time the state-backed asset manager has accepted outside equity.
The deal is the latest sign of the Abu Dhabi’s state investment fund’s interest in growing its presence in the private credit space.
In November, Mubadala Investment Company extended its partnership with Apollo for multiple years, as it looks to grow its private debt and equity origination capabilities globally.
And last year, Mubadala partnered with Ares Management and Aldar Properties on a $1bn private credit fund.
Read more: Most sovereign wealth funds plan to ramp up private credit allocation
“Diversification and scale are becoming increasingly important qualities for alternative asset managers in order to deliver value for investors,” said Oscar Fahlgren, chief investment officer of Mubadala Capital.
“This transaction extends Mubadala Capital’s ability to provide differentiated returns and capabilities to source and support a wider range of attractive investment opportunities from around the world.”
Silver Rock specialises in structured finance and high-yield debt investments, and currently manages approximately $10bn in assets.
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