London: European credit specialist AlbaCore Capital Group (AlbaCore) has introduced its new Senior Direct Lending Strategy (the Strategy), after securing anchor investments from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and Mitsubishi UFJ Trust and Banking Corporation (the Trust Bank). In a statement, AlbaCore announced the successful first close of the Strategy, which has brought in an anticipated US$1.8 billion in investable capital.

According to BERNAMA News Agency, the Strategy is designed to allow AlbaCore to take advantage of the expanding market opportunities in loan financing. This initiative aims to strengthen its global presence and provide enhanced value to its clients. David Allen, AlbaCore’s Managing Partner and Chief Investment Officer, noted that backing from ADIA and Trust Bank demonstrates the attractiveness of the Strategy and AlbaCore’s capability to seize emerging opportunities.

Hamad Shahwan AlDhaheri, Executive Director of ADIA’s Private Equities Department, highlighted the significance of their anchor commitment in fostering a deeper relationship with AlbaCore. AlDhaheri pointed out that the Strategy holds potential to address the increasing demand for private credit solutions within Europe.

Additionally, Takafumi Ihara, Chief Executive of the Trust Bank’s Asset Management and Investor Services Business Unit, expressed enthusiasm for supporting the Strategy. Ihara indicated that it aligns with the Trust Bank’s objective to expand its global asset management business and enhance competitiveness in the direct lending market.

The Strategy will utilize AlbaCore’s extensive understanding of European corporate capital structures to construct a diversified portfolio of senior direct lending investments. It will focus on downside protection and aim to deliver appealing risk-adjusted returns. AlbaCore will employ comprehensive bottom-up fundamental credit analysis to primarily fund senior private loans for upper-mid to large-cap performing European corporations.