2017 Annual Review
Alternative Investment & Infrastructure
Alternative Investment & Infrastructure

Last year, the Alternative Investments and Infrastructure platform performed extremely well, marked by a number of milestones and strong momentum across each business area.

Waleed Al Mokarrab Al Muhairi
Waleed Al Mokarrab Al Muhairi
Deputy Group CEO & Chief Executive Officer, Alternative Investments & Infrastructure, Mubadala Investment Company
What were the highlights for the Alternative Investments & Infrastructure platform in 2017?

2017 was an exceptionally strong year. In real estate, for instance, we continued to deploy capital internationally through a number of exciting investment opportunities. Our balanced portfolio encompasses commercial, residential, industrial and some retail, usually of yielding assets in regions of the world that are consistent with our strategy to advance into the developed markets of North America, Europe and Asia.

In the healthcare sector, Mubadala is building on synergies and opportunities to streamline services while addressing gaps in our continuum of care and setting a new standard in Abu Dhabi. Our healthcare businesses are opportunistically reviewing disruptive investments in the healthcare industry as we diversify our portfolio of assets under management.

At Mubadala Capital, 2017 saw many achievements, but among the most important was our partnership with Ardian, one of the top secondary investment groups in the world. This transaction marked Mubadala’s entry into third party capital management for the first time with Ardian investing US $1.75 billion to take a majority stake in a US $2.5 billion portfolio owned by Mubadala The agreement also established a new US $1.5 billion private equity fund with equal primary capital commitments from Mubadala Capital and Ardian.

In May last year, we also announced a US $15 billion commitment to the Softbank Vision Fund, a major technology and innovation-focused vehicle which has enabled us to gain further exposure in the technology sector with stakes in the likes of China’s Didi Chuxing and Uber. The announcement that Mubadala will open an office in Silicon Valley also marked an important development for the Capital team, enabling us to get closer to the vibrant venture capital and entrepreneurship networks there through our $400 million Venture Fund. This fund has already deployed capital in a number of exciting technology businesses.

What have been some of your platform’s local success stories?

Locally, Al Maryah Island has continued to see significant growth and development. We have added several world-class food and beverage offerings while major community events such as UAE National Day, New Year’s Eve and Chinese New Year have all contributed to the destination becoming a focal point for commercial, leisure and cultural life in Abu Dhabi. Footfall has also increased, and with five new office tenants, there is a real vibrancy about the island.

In healthcare, 2017 was a breakthrough year with tremendous success across the network. Our first healthcare asset, Imperial College London Diabetes Centre (ICLDC), launched a new branch at Zayed Sports City and is already nearing capacity, as is the ICLDC branch in Al Ain. These facilities offer services that are in high demand locally. Also helping to meet community needs is Healthpoint, our multi-specialty hospital, which is fully open across all clinical centers of expertise.

Our flagship healthcare asset, Cleveland Clinic Abu Dhabi (CCAD), has had a tremendous set of regional and nationwide firsts. For example, CCAD completed the nation’s first multi-organ harvesting and transplant, in addition to conducting 25 kidney transplants and a successful, highly complex liver transplant. Just three years since it opened its doors, the hospital is saving lives and conducting a range of complex procedures – an unprecedented achievement. I am delighted that as an advanced hospital dealing with the highest level of acuity in the region and attracting patients from more than 80 countries, we also received accreditation in 2017 to start receiving medical students.

I am also extremely proud that our healthcare network is increasingly seeing UAE nationals secure positions as medical practitioners, administrators and managers, helping build the pool of local talent. At CCAD, for instance, we are already at more than 18 percent Emiratization. This story is reflected in other areas of the business too, with Emirati talent deployed in all our international offices.

How has the platform’s strategy evolved since the establishment of Mubadala Investment Company, and what lies ahead?

We will remain focused on two key priorities.

First, we will continue to invest in companies that generate strong cash flow with yield. This is a primary metric across the capital investments, healthcare and real estate sectors.

Second, we will continue to be value investors, seeking to deploy capital when we see assets that are undervalued and have significant strategic growth potential. This includes ensuring that we manage our investments through the asset lifecycle and are able to monetize at the right time for the best price.

In addition to delivering attractive returns for our shareholder, having moved into managing third party capital, we are committed to responsible investing for the continued delivery of best-in-class returns.

Our vision is that success in this field will generate a virtuous cycle in which we attract further third-party funds, which then increases our assets under management.

In addition, the healthcare team will also focus on building connectivity and integration across the network of assets to better serve the community and drive momentum across all centers of excellence.

Capital Investments

Mubadala Capital actively deploys capital in sectors, geographies and asset classes with long-term value potential. Investing throughout the capital structure in a diversified portfolio of public and private securities globally. Its focus and bias are towards capital preservation.

Mubadala Capital was established in 2011 as the financial investment arm of Mubadala Investment Company and operates six integrated businesses focused on various asset classes and geographies. The group invests globally across the capital structure in both public and private securities, whether directly or through third-party managed funds.

Each business has been developed based on a research-driven, value-oriented investment strategy with a focus on capital preservation and maintaining a well-diversified portfolio that generates superior risk-adjusted returns on behalf of its shareholder and investors. Through its multi-asset and product approach, Mubadala Capital benefits from meaningful synergies that are generated from collaboration between business lines.

In addition to managing its own balance sheet investments, Mubadala Capital manages third party capital on behalf of institutional investors in three of its businesses, including through two private equity funds and one early stage venture fund.

Overview of Mubadala Capital Businesses
  • Private Equity: Direct investments, co-investments and fund commitments in North America and Europe across a wide range of industries with two third-party private equity funds under management on behalf of its LPs along with a collection of balance sheet assets.

  • Public: Manages large, core public equity positions on behalf of Mubadala Investment Company as well as a long-biased portfolio of global public equities in value-oriented companies and special situations.

  • Credit: Pursues direct middle market lending opportunities in North America and Europe across different asset classes through scalable investment partnerships with market leaders.

  • Sovereign Investment Partnerships: Manages commercially driven co-investment programs between the UAE Government and foreign counterparts that include Russia, China, France, Kazakhstan and Greece. These strategic government mandates deliver sustainable financial returns to the UAE while developing strategic partnerships with the respective host countries.

  • Ventures: Pursues venture capital direct investments through a third party capital managed fund, makes fund commitments through a Fund of Funds platform and manages Mubadala’s partnership with Softbank including its US $15 billion LP commitment to the Vision Fund.

  • Brazil: Manages a diversified portfolio of private and public assets in Brazil through the completion of a series of transactions including M&As, restructurings, corporate carve-outs, bankruptcy work-outs and other types of special situations.

Porto Sudeste

Porto Sudeste is a private port terminal in Brazil, with the capacity to handle 50 million tons of iron ore per year.

Increased productivity of port handling
Loss time incidents after 1,415,574 hours worked in 2017
Of the workforce from the surrounding area

We are supporting the development of a world-class, commercially sustainable private healthcare sector in the UAE.

Through partnerships with international medical institutions, our network of specialized facilities is enhancing regional healthcare capacity, addressing the UAE’s most pressing healthcare needs, and reducing the need for patients to travel overseas for complex care.

Abu Dhabi Telemedicine

Abu Dhabi Telemedicine (ADTC)is a joint venture between Mubadala and Switzerland’s leading telemedicine provider Medgate. It is the first medical teleconsultation center in the UAE

Of patients would recommend Abu Dhabi Telemedicine Centre to friends and family
Calls answered within 60 seconds, and call back by physician within 30 minutes
Representing the UAE as Institutional Member of the International Society for Telemedicine & eHealth
Capital Health Screening Centre

Capital Health Screening Centre is a state-of-the-art medical facility that provides dedicated, Department of Health - Abu Dhabi certified visa medical screening services for individuals and corporate groups, with on-site ID card services.

Increase 420,567 guest visits
Increase 176,392 walk-in patients
Patient satisfaction
Cleveland Clinic Abu Dhabi

Cleveland Clinic Abu Dhabi (CCAD) is part of Mubadala’s network of world-class healthcare facilities and is a multispecialty hospital offering critical and acute care services, reducing the need for patients to travel abroad for treatment.

Patients visits
Surgical cases
Performed the UAE’s first successful full heart transplant

Healthpoint is an integrated care hospital that is helping to address some of Abu Dhabi’s most pressing healthcare needs by offering state-of-the-art facilities that provide full-cycle care – inpatient, outpatient and rehabilitative services.

Patient satisfaction
Patients visits
Surgical cases
Imperial College London Diabetes Centre

Imperial College London Diabetes Centre is a one-stop, state-of-the-art, outpatient facility that specializes in diabetes treatment, research, training and public health awareness.

Increase to 326,684 patient visits
Emiratization rate
National Reference Laboratory

National Reference Laboratory offers more than 4,700 sophisticated and specialized medical diagnostic tests to regional healthcare providers.

Market share across the UAE
0 M
Tests completed
Accreditations and re-accreditations
Tawam Molecular Imaging Centre

Tawam Molecular Imaging Centre is a specialized molecular imaging facility, located on the Tawam Hospital Campus in Al Ain.

The only center in the region to offer PET myocardial perfusion imaging utilizing N13-Ammonia radiopharmaceuticals
First healthcare facility in the UAE to apply for and receive the ACR (American College of Radiology) accreditation.
PET.CT scans have been carried out since opening in 2010
Real Estate & Infrastructure

We are an equity partner and asset manager, focusing on infrastructure projects and real estate investment opportunities both within the UAE and internationally.

Al Maryah Island

Al Maryah Island is Abu Dhabi’s business and lifestyle destination designed as an investment and financial free zone to meet Abu Dhabi’s long-term commercial and community growth needs.

Visitors during NYE 2017.
Visitors during Winter Wonderland.
Home to more than 60+ blue chip companies and Abu Dhabi Global Market, the world's newest International Financial Center.
Four Seasons Hotel Abu Dhabi

Four Seasons Hotel Abu Dhabi is a 5-star luxury hotel situated in a prime waterfront location on Al Maryah Island, Abu Dhabi’s business and lifestyle destination.

Won 7 awards in 2017 across destination, food and beverage, nightspots and spa.
Revenue per available room RevPAR leaders in the city during the 2017 Formula 1 weekend.
Rosewood Abu Dhabi

Rosewood Abu Dhabi is a 5-stars luxury business hotel that offers a range of amenities with a scenic waterfront view of the Abu Dhabi skyline from Al Maryah Island.

Achieved revenue per available room (RevPAR) ranking of 2 out of 5 among their competitive set.
Won 5 awards from local and international publications.
The Galleria

The Galleria on Al Maryah Island is a luxury shopping and dining destination in the heart of Al Maryah Island, Abu Dhabi’s business and lifestyle destinations.

Annual footfall increased
Monthly total sales increased compared to 2016
Monthly total sales increased compared to 2016
Zayed Sports City

Zayed Sports City was built to fulfill the vision of the late Sheikh Zayed bin Sultan Al Nahyan, the UAE’s founding father and first President.

Sports in one place
Public events
Abu Dhabi Finance

Abu Dhabi Finance is an innovative provider of real estate financing in the UAE.

Total loan book growth
Growth in SME lending in 2017