Mubadala Capital’s Credit team has been investing since 2009, principally in middle market direct lending opportunities in both 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 (“MGEC”), a joint venture (“JV”) with GE Capital. Following Mubadala’s successful exit from the JV, the Credit team, operating as part of the Mubadala Capital platform, pursues a similar strategy with a broad group of origination partners.
Mubadala Capital’s Credit team leverages the experience accumulated by investing U.S. $5.5 billion in a diversified loan book that included more than 500 transactions across a wide range of industries and asset classes through MGEC. The team’s investment approach involves accessing deal flow by developing and leveraging deep, focused and scalable partnerships with leading credit originators in its areas and markets of focus. The team also often utilizes structured leverage facilities to enhance returns.
Each partnership and the overall portfolio have been constructed while adhering to the following key principles:
- Access to differentiated, consistent and sustainable deal flow from best-in-class credit partners.
- Each transaction is underwritten and approved by Mubadala Capital.
- Conservative “underwrite-to-hold” cash flow-focused underwriting based on fundamental credit analysis.
- Stress testing LBO models to validate solid downside protection.
- Construction of diversified, granular portfolio of loans delivering attractive risk-adjusted returns.
- Rigorous portfolio monitoring and risk management process.
Mubadala Capital’s Credit team currently manages a variety of credit investments mainly in senior secured, middle market leveraged loans and unitranche loans, with ancillary investments in structured credits, such as CLOs, and opportunistic investments in corporate loans and bonds.
Typical Investment Parameters
All sectors considered.
North America and Europe.
U.S. $15-50 million investments that complement our partners’ hold size.
Middle market, senior secured leveraged finance transactions: non-rated direct lending, unitranche loans and equity investments in middle market CLOs.
Companies with generally less than U.S. $50 million of earnings before interest, tax, depreciation and amortization (“EBITDA”).
Debt maintenance and incurrence covenant package.
Access to flow of credit opportunities with independent credit underwriting and investment decision rights.
Lender of record with certain voting rights.
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 comprised of investment professionals based in Abu Dhabi, New York and Rio de Janeiro.
Private EquityRead more
Mubadala Capital’s Private Equity business has been making direct investments, co-investments and fund commitments since 2008 and is managed by an investment team with professionals based in Abu Dhabi and New York.
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 China, France, Greece, Kazakhstan 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 10-year track record of being an active investor in advanced technology. The Ventures platform includes a direct investment business, a fund of funds business and the management and oversight of Mubadala’s partnership with SoftBank, including its U.S. $15 billion LP commitment to the SoftBank Vision Fund.
The Ventures team is based in Abu Dhabi and San Francisco with strong connectivity to European and Chinese venture capital markets through other Mubadala Capital managed vehicles.