Mubadala Capital, the asset management subsidiary of Mubadala Investment Company, has unveiled a strategic foray into the investment arena, with the backing of global alternative asset heavyweight Apollo. The newly established entity, Mubadala Capital Solutions, seeks to entice institutional investors and family offices by offering tailor-made investment solutions across diverse asset classes, including access to exclusive proprietary private market opportunities.
In a statement issued on Thursday, the company articulated its vision for Mubadala Capital Solutions as a provider of “bespoke solutions,” embarking on a global investment journey with the intent to tap into a range of exclusive private market prospects. Managing Director and Chief Executive, Hani Barhoush, affirmed the strategic direction, stating, “The launch of Mubadala Capital’s new solutions platform builds on our track record of generating attractive risk-adjusted returns for investors through our various funds and investment strategies.”
The investment strategy within Mubadala Capital Solutions encompasses three distinctive approaches. Firstly, it includes a “highly diversified evergreen investment product” meticulously geared towards private market opportunities. This investment strategy has been initiated with a substantial $2.7 billion diversified portfolio derived from Mubadala Capital’s own balance sheet. Key features include low volatility, robust embedded downside protection, an attractive cash yield from inception, and the potential for significant asset appreciation over time.
It leverages Mubadala Capital’s extensive access, existing infrastructure, and a well-established track record, offering investors the opportunity to co-invest alongside Mubadala.
The second component of Mubadala Capital Solutions focuses on “separately managed accounts,” presenting investors with bespoke and customised investment portfolios tailored to their specific investment criteria, risk appetite, and liquidity preferences.
The third strategy incorporated into the new solutions platform is Abu Dhabi Catalyst Partners (ADCP), born out of a joint venture between Mubadala Capital and Alpha Wave. ADCP is uniquely positioned to invest in top-tier investment firms and businesses poised to benefit from their presence in the Abu Dhabi Global Market. Launched in 2019 with an initial allocation of $1 billion, it has now grown to manage $1.7 billion in assets.
Mubadala Capital Solutions, co-headed by Maxime Franzetti, a founding member of Mubadala Capital, and Fatima Al Noaimi, builds upon the foundation of Mubadala Capital’s existing businesses in private equity, venture capital, and a special opportunities strategy in Brazil.
At present, Mubadala Capital oversees a substantial $20 billion in assets, encompassing its own balance sheet investments and third-party capital vehicles catering to institutional investors. The firm maintains a global presence, with offices in key financial hubs, including Abu Dhabi, London, New York, San Francisco, and Rio de Janeiro.
Notably, in December, Mubadala Capital announced a significant $2.1 billion private equity partnership transaction with France’s Ardian. Additionally, earlier this month, the company inked an initial agreement with Brazil’s Petrobras to explore potential investments in a biofuel project.
This strategic move aligns with the broader expansion of Mubadala’s global partnership with Apollo Global Management, aimed at enhancing capabilities in originating transactions across various asset classes, capitalising on the immense growth and opportunity potential in private markets, as noted by Apollo co-president Jim Zelter. As of June 30, 2023, Apollo managed approximately $617 billion in assets under management, underscoring the significance of this collaboration.
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