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Sovereign wealth fund awards $700m mandate

The Abu Dhabi Investment Authority has handed a $700 million mandate to a listed real estate investment manager.

The mandate has been awarded to Qualitas by a wholly owned subsidiary of the fund and it's to invest in local commercial real estate private credit opportunities. The mandate will be carried out through the newly created Qualitas Diversified Credit Investments (QDCI), focused on Australian commercial real estate private credit and senior credit strategies, the ASX-listed manager said.

Qualitas said the mandate is well-timed to coincide with current dislocation in global markets, "driving increased volatility and hesitancy by traditional funding sources to deploy capital".

The mandate brings Qualitas' total committed funds under management to $5 billion and increases the proportion of its FUM held on behalf of institutional investors to 73%. The balance is retail and high-net-worth investors.

Qualitas said it is co-investing $35 million in QDCI.

In addition, Qualitas has granted options to the sovereign wealth fund under which it may acquire up to 9.99% of the business. It would make ADIA eligible for the maximum equity interest if it commits further, incremental mandates to Qualitas of $1 billion.

Should the options be exercised, the additional capital raised will strengthen Qualitas' balance sheet and provide additional capacity for Qualitas to co-invest with investors, the group said.

"I am proud that such a well-regarded, leading global institutional investor has chosen Qualitas for this significant mandate and has backed its belief in our business with options to acquire a meaningful stake in Qualitas," group managing director and co-founder Andrew Schwartz said.

Read more: QualitasAbu Dhabi Investment AuthorityADIAQualitas Diversified Credit Investments