History
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.
Investment Philosophy
Mubadala Capital’s Public Equities team employs a consistent, disciplined and private equity-like approach to investing in public markets with a focus on traditional value investing and special situations. The team seeks to invest in value-oriented companies and special situations that the team believes are either currently misunderstood or undergoing structural change.
The key attributes of the investments in the long-biased concentrated portfolio include:
- Quality businesses typically earning high unlevered returns on invested capital with significant barriers to entry and predictable and reliable cash flow generators.
- Easy to understand businesses operating in a well-known industry and analyzable from the outside.
- Businesses that have compelling valuations with highly skewed risk / reward profiles and high margins of safety with price-to-value discounts of 50 percent or more.
- Target businesses are typically mispriced for a range of reasons: businesses / industries in transition, temporary financial underperformance, too small and not covered by Wall Street analysts, not currently on investors’ radar screens, businesses facing capital structure challenges and situational complexity, among others.
Typical Investment Parameters
Sector
Sector agnostic with a historical focus on companies with predictable earnings potential within the consumer products and services, finance, industrial, media / telecom, and real estate sectors in which the team has investing experience.
Geographic Focus
North America and Europe; may consider other geographies on a selective basis, particularly where Mubadala’s relationships can be leveraged.
Investment Approach
Generally, aims to invest in three-to-five core long investments each year; ability to go short.
Typical Universe
Carefully designed universe of small and mid-cap companies with a bias towards U.S. $1 billion to U.S. $20 billion market capitalization, and flexibility to look outside of this range.
Target Portfolio Construction
Concentrated investments in the highest conviction ideas:
- Long portfolio: 15 to 20 investments.
- Short portfolio: 10 to 15 investments.
Net exposure will typically range between 40 and 80 percent in normal market conditions.
Objective
Achieve strong, long-term returns with a focus on capital preservation.
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Brazil
Read moreMubadala 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.
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Credit
Read moreMubadala 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.
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Private Equity
Read moreMubadala 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.
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Sovereign Investment Partnerships
Read moreMubadala 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.
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Ventures
Read moreMubadala 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.
