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11 December 2019

Mubadala Capital seeks to double third-party funds to $6 billion

Mubadala is part of Abu Dhabi’s efforts to diversify its economy by turning oil revenue into profitable investments while also attracting expertise and jobs.

Bloomberg/Christopher Pike

Abu Dhabi sovereign wealth fund’s investment arm, Mubadala Capital, plans to double the assets it manages for third-party investors, reported Bloomberg.

Waleed Al Muhairi, the Deputy Chief Executive Officer of Mubadala Investment Company, said, “One of the things you do not often hear in the same sentence is sovereign wealth funds managing third-party capital, we are raising our third-party fund as Mubadala Capital.”

Al Muhairi said that Mubadala has 17 LPs, all of them are institutions.

The unit, which currently manages $25 billion of its own and external capital, plans to boost that amount to $40 billion over the medium-term horizon, said Al Muhairi. Of that, 15 per cent—or around $6 billion—is expected to come from other institutional investors, almost doubling the $3.4 billion of third-party capital it currently manages.

The firm merged with the International Petroleum Investment Company in 2017 and absorbed Abu Dhabi Investment Council last year now manages about $229 billion in assets.

The state investor has invested $100 billion in the US, more than 40 per cent of its roughly $240 billion portfolio. Similarly, Mubadala has invested $2 billion in China in 15-16 sectors from its $10 billion UAE China fund and expects to step up investments in the mainland.

Mubadala has invested $15 billion in Softbank’s Vision Fund I and recently announced plans to invest $250 million through two funds in technology firms in the Middle East and North Africa.

RELATED STORIES: Mubadala Capital Softbank Vision Fund I Mubadala Investment Company





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