Fund to target investments in China and UAE across multiple sectors and asset classes
Agreement signed in the presence of HH Sheikh Mohamed bin Zayed and President Xi Jinping of China during official visit to Beijing
ABU DHABI: Mubadala Development Company, the Abu Dhabi based investment and development company, China Development Bank Capital (CDBC), and China’s State Administration of Foreign Exchange (SAFE), today confirmed the launch of a $10 billion global investment fund.
The new stand-alone investment fund, which will be equally funded between China and the UAE, will deploy capital against jointly-approved investments.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Mubadala’s senior executive signatory of the agreement, said: “We are delighted to have established this joint investment fund with our Chinese partners CDBC and SAFE. Built around the deep rooted relationship between our two countries, the fund signifies a shared commitment to elevate our partnership by creating a platform to make significant co-investments.”
The fund will have the flexibility to look at a range of alternative investment strategies, asset classes and special opportunities, including greenfield investment projects, with the aim of building a balanced portfolio with a focus on sustainable returns and principal capital protection.
The sourcing and diligence of new investments will be undertaken by a team that will include both existing Mubadala and CDBC employees, and newly hired investment industry professionals, with a Board comprised of representatives from the fund’s management team as well as representatives from each shareholder.
Khaled Al Shamlan, head of Sovereign Investment Partnerships at Mubadala Capital, Mubadala's dedicated, in-house asset and investment management unit that is managing Mubadala’s position, commented: “This new fund will allow us to build a new partnership into our existing portfolio of sovereign investment partnerships, including those with Russia and France. We look forward to working with our Chinese partners to deploy capital against projects of strategic and commercial importance."