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.
Built on established private equity investing principles, the SIP team’s philosophy also maintains the flexibility to employ new strategies to capture prospective opportunities given the themes and investment landscape of the corresponding country.
The program is driven by the following key principles:
- Research-driven, value-oriented investment strategy with a focus on long-term wealth creation and capital preservation.
- Proactive and agile investment style demonstrated by the ability to execute investments in a nimble and efficient manner to capitalize on high-quality opportunities.
- Deep relationships with best-in-class financial and strategic partners in target country to generate differentiated deal flow and insights.
Partnership Guiding Principles
While each bilateral partnership is distinct, they all adhere to the following guiding principles:
- Investment portfolio managed by a dedicated in-house team who works with the corresponding sovereign partner through a well-defined operating model.
- Active presence maintained in the target country with a commitment to expand resources on the ground once scale is achieved.
- Disciplined investment program whereby capital and resources are deployed deliberately in accordance with experience and opportunity in the host country.
Each partnership has its own investment portfolio jointly managed with the respective sovereign partner. Currently, the active investment programs include:
China Development Bank Capital (“CDBC”), The State Administration of Foreign Exchange (“SAFE”)
Russia Direct Investment Fund (“RDIF”)
Banque Publique d'Investissement (“Bpifrance”)
Greece’s New Economy Development Fund S.A. (“TANEO”)
National Managing Holding Baiterek (“Baiterek”)
Typical Investment Parameters
While the specific investment strategy will vary across each partnership, the investment program is driven by the following key principles:
Generalist approach with occasional sector focus depending on local market conditions.
While there is flexibility to invest across all asset classes, each SIP may develop investment preferences depending on the economic landscape and country risk profile.
U.S. $50-250 million with the flexibility to pursue transactions outside of the targeted range and across the capital structure (equity, debt, mezzanine).
Control or minority investments, with a preference for investing alongside a well-aligned sponsor or strategic investor. Lead, co-lead, syndicated co-investments and LP commitments to private equity funds.
Ownership / Governance Model
Active portfolio management approach with a preference for board seats at portfolio companies where the investment team has the ability to contribute distinctive expertise and create value over time.
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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.
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.
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.