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.