06/10/2024
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06/10/2024
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KUWAIT CITY, Oct 06: ABK Capital, the asset management arm of Al Ahli Bank of Kuwait, and Blackstone, the world’s largest alternative asset manager, have partnered to promote leading private market investment solutions in Kuwait within the private credit and real estate markets. Blackstone is recognized as the leading alternative asset manager globally, with USD 1.1 Tn in Assets Under Management. Blackstone’s credit platform manages USD 418 Bn in assets, and the firm’s global real estate portfolio is valued at USD 603 Bn, with approximately 12.4 thousand real estate assets.
Private credit has attracted significant investor interest around the world in the past few years as it offers attractive risk-adjusted returns. The asset class has grown rapidly in recent years as it offers borrowers flexible, quick, and customized access to capital while offering investors a higher income with lower volatility and historically lower default rates.
On top of that, the direct lending strategy, which this partnership will focus on, adds an additional layer of risk mitigants by focusing on senior-secured lending with tighter covenants. In this space, Blackstone is considered one of the largest direct lenders globally, with a private credit platform focused on senior direct lending and opportunistic credit among other credit strategies. Meanwhile, ABK Capital has been a pioneer in offering private credit solutions in the local market, availing a strategy of well-diversified senior secured lending exposure with an opportunistic approach to other credit strategies.
Private real estate has historically delivered a good combination of capital growth and income with relatively lower volatility. Its relatively lower correlation to other asset classes adds another diversification component to the investor’s portfolio. Blackstone’s real estate platform provides access to global real estate opportunities benefiting from the firm’s scale, knowledge, and breadth. While the common approach in the local market is to invest in single assets or a selection of clubbed assets, ABK Capital will continue delivering real estate solutions based on an open-ended funds approach, offering a well-diversified exposure within the real estate asset class in terms of number of properties, markets, and sectors.
The partnership with Blackstone on private credit and real estate will bolster ABK Capital’s approach in the space and enable it to provide such solutions to a wider client base, offering greater access to private markets. On this occasion, Dr. Husayn Shahrur, CEO of ABK Capital, said, “Our partnership with Blackstone is a cornerstone to our promise of delivering leading investment solutions for local and regional investors. It is a manifestation of our commitment to bringing the finest of the world closer to our clients. Building on Blackstone’s track record, ABK Capital will be advising investors on private market solutions that should meet the investment goals and needs of a wide base of investors.”
Rashmi Madan, Head of EMEA for Blackstone Private Wealth Solutions, commented, “We see strong demand for private markets from individual investors wanting to diversify their portfolio into asset classes previously reserved for institutional investors. That’s why we are pleased to partner with ABK Capital to bring their clients access to Blackstone’s private real estate and private credit strategies.”
