State funds see direct-lending partnerships as growth engine
International Forum of Sovereign Wealth Funds’ Victoria Barbary
Direct lending partnerships between sovereign wealth funds and money managers are becoming a neat way for state-owned pools of capital to gain access to direct lending opportunities and maintain exposure to regions where public markets look expensive.
Committing capital to private markets strategies is nothing new for sovereign wealth funds, but the structure of three deals last year are particularly interesting, sources said.
In September, the $232.2 billion fund Mubadala Investment Co., Abu Dhabi, partnered with Barings LLC to provide financing to European middle-market businesses through the Barings Mubadala Enterprise.
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Fund Formation Group Of The Year: Paul Weiss
Law360 (December 15, 2020, 3:23 PM EST) Paul Weiss Rifkind Wharton & Garrison LLP steered the creation of the direct lending platform Apollo Strategic Origination Partners and secured the dismissal of a suit looking to hold Blackstone accountable for a Kentucky pension fund s losses, earning the firm a spot among Law360 s 2020 Fund Formation Groups of the Year.
The seven partners, eight counsel and more than 45 attorneys comprising Paul Weiss private funds group have fueled the firm s involvement in $50 billion in dislocated investment funds since March and bolstered the group s diverse profile working on funds across the spectrum, according to practice group leaders.