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.
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 plays 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 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.
North America and Europe; may consider other geographies on a selective basis, particularly where Mubadala’s relationships can be leveraged.
Generally, aims to invest in three-to-five core long investments each year; ability to go short.
Carefully designed universe of small and mid-cap companies with a bias towards U.S. $500 million to
U.S. $10 billion market capitalization, and flexibility to look outside of this range.
Target Portfolio Construction
Concentrated investments in the highest conviction ideas:
- Long portfolio: Maximum of 20 investments.
- Short portfolio: Maximum of 15 investments.
Net exposure will typically range between 50 and 80 percent in normal market conditions.
Achieve strong, long-term returns with a focus on capital preservation.
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.
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.
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.
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.