Mubadala Capital, the asset management subsidiary of Abu Dhabi’s sovereign fund Mubadala Investment Company, has received a significant investment into its private equity business led by BlackRock’s Secondaries and Liquidity Solutions group (BlackRock) and a consortium of global institutional investors.
The BlackRock-led consortium’s investment was made into a portfolio of assets currently managed by Mubadala Capital, further, the group of companies committed $400 million to Mubadala Capital’s private equity Fund III, which has exceeded its fundraising target and closed at $1.6 billion.
Commenting on the partnership with BlackRock, Mr. Adib Martin Mattar, Head of Private Equity at Mubadala Capital, said “BlackRock’s institutional approach to underwriting and partnership orientation has helped create what we expect to be a landmark transaction, especially in a highly uncertain market environment.”
The partnership between Mubadala Capital and BlackRock was formed in line with the final close of BlackRock’s $3 billion Secondaries and Liquidity Solutions (SLS) strategy, which is among the largest fundraises for an inaugural private equity secondaries strategy globally to date.
BlackRock’s SLS strategy targets to lead and invest opportunistically in mid-sized secondary transactions, and SLS led this transaction with significant interest and involvement from various strategic partners and co-investors.
“Completing this investment was highly collaborative between BlackRock, our partners and Mubadala Capital. We look forward to being a limited partner and continuing to explore further ways to collaborate with Mubadala Capital in what is clearly a highly differentiated investment platform that has demonstrated an ability to leverage its sovereign access and network for the benefit of its investors.”
Mubadala Capital manages $9 billion of assets in third-party managed funds across its private equity, public equities, venture capital and Brazil businesses, and is the first sovereign wealth fund to manage third-party capital on behalf of other institutional investors.
In addition to successful exits in EMI Music Publishing and Restaurant Brands International, Mubadala Capital has a strong history of leveraging the secondary market to seek attractive returns for its existing investors.