Mubadala, the Abu Dhabi-based strategic investment and development company, and Mesirow Financial, a diversified financial services firm headquartered in Chicago, have signed an agreement to establish a new investment management Joint Venture based in Abu Dhabi.

The Joint Venture will require regulatory approvals and licenses related to investment management companies in order to operate. Following receipt of the necessary regulatory approvals and licenses, the new company will focus on currency and commodity risk management. Bringing together Mubadala’s regional expertise with Mesirow Financial’s proven global track record in a range of highly specialized investment management services, the company will cater to clients across Abu Dhabi and the MENASA region. It will initially target institutional investors and large corporations which have a particularly high exposure to fluctuations in commodity and currency prices.

Waleed Al Mokarrab Al Muhairi, Chief Operating Officer, Mubadala, said; “Since the global financial crisis, investors have become increasingly focused on managing their exposures to risk more effectively. This new venture will help clients navigate market fluctuations and manage downside risks – particularly in commodity and currency prices. It also increases the breadth of financial and investment services available in and out of Abu Dhabi, as well as helping to build the skills and knowledge base that underpin Abu Dhabi’s ambitions to become a leading financial centre in the Middle East. Mesirow Financial’s position as one of the industry leaders in this field makes it an ideal partner for Mubadala.”

Building on the track record of Mesirow Financial with over $25 billion USD AUM in currency and commodities, it is envisaged that the new venture will offer both passive and active currency risk management programs, which are recognized as among the most innovative in the industry. This will enable clients to control exposure to price fluctuations as well as take advantage of opportunities to enhance returns. The new venture will also specialize in advising and managing commodity portfolios focusing on absolute return strategies leveraging the firm’s expertise in applying their highly-ranked discretionary programs. Over the medium term, the venture will expand its offering to devising multi-strategy investment solutions tailored to the needs of institutional investors in the region.

James C. Tyree, Chairman and Chief Executive Officer, Mesirow Financial, commented; ”We are honored to be joining forces with Mubadala, an organization that shares our focus on clients, meeting their investment needs and the needs of the region.”

Diane C. Swonk, Chief Economist of Mesirow Financial, added; “Given the growth that is expected in the coming years, this venture is an important part of the economic infrastructure that will be in place to assure the global integration of Abu Dhabi’s economy. The demand for these products and services - both in Abu Dhabi and throughout the region - is expected to grow as corporations and investment institutions see the value of thought-leading risk management. Abu Dhabi is well positioned to be the regional leader in this field.”

Tyree said; “What is truly impressive is the perfect alignment between Mubadala and Mesirow Financial, working to achieve the strategic and financial initiatives outlined in the Abu Dhabi Economic Vision 2030.”

In addition to addressing the market needs for risk management services, the Joint Venture will bring best-in-class practices in commodity and currency risk management to Abu Dhabi and facilitate the development of local talent. For instance, the new venture will send young Emirati financial services professionals to an apprenticeship program within Mesirow Financial’s headquarters in Chicago.

Building capabilities and skills across the financial services sector is an integral part of The Abu Dhabi Economic Vision 2030 which sets out the framework for diversifying the economy away from Oil and Gas. The ability to tailor sophisticated investment management solutions helps underpin the Emirate’s progress towards developing a center of excellence in Asset Management in the region.

About Mubadala Development Company

Mubadala Development Company (Mubadala) is a catalyst for the economic diversification of Abu Dhabi. Established and owned by the Government, the company’s strategy is built on the management of long-term, capital-intensive investments that deliver strong financial returns and tangible social benefits for the Emirate.

Mubadala brings together and manages a multi-billion dollar portfolio of local, regional, and international investments. The company partners with leading global organizations to operate businesses across a wide range of industry sectors including aerospace, energy and industry, healthcare, information communications and technology, financial services, infrastructure and real estate. By doing so, Mubadala accomplishes its mission to expand the economic base of the Emirate and contribute to the growth and diversification of the Abu Dhabi economy.

For more information about Mubadala, its partnerships and activities please visit http://www.mubadala.ae.

About Mesirow Financial

Mesirow Financial is a diversified financial services firm headquartered in Chicago. Founded in 1937, it is an independent, employee-owned firm with more than $50 billion in assets under management and 1,200 employees in locations across the United States and in London. With expertise in Investment Management, Global Markets, Insurance Services and Consulting, Mesirow Financial strives to meet the financial needs of institutions, public sector entities, corporations and individuals.

Mesirow Financial Currency Management specializes in the management of currency risk for clients worldwide. It has earned a solid reputation in the industry, including being awarded Currency Manager of the Year 2008 by European Pensions Magazine. With more than $25 billion in assets under management in currency and commodities for clients in the United States, Canada, Europe, Asia and Australia, its passive and active programs are recognized among the most innovative in the industry. It is a division of Mesirow Financial Investment Management Inc., an SEC registered investment advisor. For more information about Mesirow Financial, visit its website at mesirowfinancial.com.

Mubadala Media Contact:
Amanda Fallon, Mubadala Development Company
E: afallon@mubadala.ae
M:+971 (0)50 7129 195

Mesirow Financial Media Contacts:
Debbie Krieps
E:dkrieps@mesirowfinancial.com
M:+1 312 595 6260