Mubadala Capital’s Brazil business has been active since 2011 and has built a diversified portfolio of private and public assets through the completion of a number of transactions including mergers and acquisitions, restructurings, corporate carve-outs, bankruptcy workouts and other types of special situations. The Brazil team is based in Rio de Janeiro and supported by the Mubadala Capital offices in New York and Abu Dhabi.
Mubadala Capital’s Brazil team employs an active investment approach, strategically designed to take advantage of attractive investment opportunities in situations of distress, while capitalizing on the team’s unique experience in the local Brazilian market.
The investment strategy is anchored around the following key principles:
- Emphasis on special situation investments across the capital structure, driven by financial strain, distress or complex situations.
- Acquire high-quality businesses at a discount to their intrinsic value, creating a margin of safety at the closing of a transaction that reduce the dependency on Brazil’s economic cycles and currency while retaining the upside exposure associated with a growing economy.
- Front-load risk into deal structuring, negotiation and execution – once a transaction is completed, the situation that created the initial distress, and therefore the discount to intrinsic value, is often resolved.
- Use of a fundamental-driven investment strategy that focuses on financial improvements, value creation and opportunities to structure downside protection.
Mubadala Capital’s Brazil team currently manages third-party capital on behalf of Mubadala and institutional investors, including a special situations fund. Total investments in the country is in excess of U.S. $3 billion.
Typical Investment Parameters
Sector agnostic as transaction characteristics rather than sector focus drive investment decisions.
Primarily focused on Brazil; may opportunistically invest outside Brazil.
U.S. $50-200 million with the flexibility to pursue transactions outside of the targeted range with co-investors.
Typically control or co-control positions, although in cases of debt or structured investments, contractual “control rights” may be utilized.
Ownership / Governance Model
Active portfolio management approach with direct involvement at the board level and below to help drive strategy and value creation.
Mubadala Capital’s Credit team has been investing since 2009, principally in direct lending opportunities across a variety of industries in North America and Europe. The Credit team has developed a track record in commercial lending by investing directly across different asset classes, initially through Mubadala GE Capital, a joint venture with GE Capital. Following Mubadala’s successful exit from the joint venture, the Credit team, operating as part of the Mubadala Capital platform, pursues a similar strategy with a broad group of origination partners.
Private EquityRead more
Mubadala Capital’s Private Equity business makes investments across the capital structure, largely in private securities on a direct basis with the aim of building portfolios that generate superior risk-adjusted returns on behalf of its investors.
Public EquitiesRead more
Mubadala Capital’s Public Equities business was established in 2011 and manages a long-biased, concentrated portfolio of global public equities. In addition, the Public Equities team also manages certain positions on behalf of Mubadala.
Sovereign Investment PartnershipsRead more
Mubadala Capital’s Sovereign Investment Partnerships (“SIP”) business has been managing commercially driven co-investment programs between the United Arab Emirates (“UAE”) Government and foreign counterparts that include key partnerships in China, France and Russia since 2013. These partnerships consist of strategic government mandates that aim to deliver sustainable financial returns to the UAE, while further developing and strengthening long-term partnerships with the respective country. The SIP team is comprised of investment professionals based in Abu Dhabi, Moscow and Hong Kong.
Mubadala Capital’s Ventures business builds on Mubadala’s long track record of active investment in advanced technology companies around the world. The Ventures platform includes a direct investment business and a fund-of-funds business.
The Ventures team is based in Abu Dhabi, San Francisco and London with strong connectivity to the Chinese venture capital community through other Mubadala Capital managed vehicles that are active in technology.