Mubadala Infrastructure Partners Ltd (MIP), a joint venture between Mubadala Development Company PJSC (Mubadala), GE and Credit Suisse announced today the first closing of its regional infrastructure fund, Mubadala Infrastructure Partners (”the Fund”) in the amount of $ 300 million.
MIP, as the manager of the Fund, will invest in a range of infrastructure projects and assets in the Gulf Cooperation Council (GCC) countries, the Middle East and North Africa (MENA) region, and Turkey. The Fund will focus on infrastructure sectors including: power, water, utilities, social infrastructure, telecommunication infrastructure and transportation. Mubadala, GE and Credit Suisse are the principal investors and sponsors of the Fund, together with a number of regional and international institutional and industrial investors.“The Fund is an important vehicle that allows for local and international institutional investment participation in regional infrastructure,” said Waleed Al Mokarrab Al Muhairi, Chairman of MIP. “The development of the infrastructure sector is and will continue to be a critical driver of economic growth in the region. This first closing is a testament to the strength of our partnership with GE and Credit Suisse as well as the interest level from regional and international investors in the asset class and the region.”
MIP, established in 2007, as the manager of the Fund, is operating from Abu Dhabi. According to various industry sources, infrastructure spending in the region is expected to be in excess of $500 billion over the coming 10 years to accommodate the growing demands of the economies and the populations in the GCC and MENA regions. Utilities and transportation feature as the fastest growing segments of the infrastructure sector. A recent estimate from McKinsey estimates that about $175 billion was spent on infrastructure development in the GCC alone in 2007.
“We are actively pursuing transactions throughout the region with an emphasis on investments in development and operating assets and businesses,” said Philip Haddad, Chief Executive Officer of MIP. “Our comparative advantage lies in the flexibility of our business model, our extensive relationships and our team.”
“GE has a growing presence in the region and this fund will help us expand and capitalize on opportunities there, as well as continue to build the strategic relationship with Mubadala announced last summer,” said Aris Kekedjian, GE Officer and President and Chief Executive Officer for GE Capital - Middle East & Africa.
“Our partnership in Mubadala Infrastructure Partners underscores our commitment to the region, and we believe the MENA region continues to be a good place in which to invest, given the strength of its economy and infrastructure development plans. We look forward to deepening our relationships with our investor partners going forward,” said Charles Pieper, Vice Chairman of Alternative Investments at Credit Suisse.