Mubadala Capital closes third private equity fund with $1.6bn

Mubadala Capital, the asset management subsidiary of Abu Dhabi’s sovereign fund Mubadala Investment Company, closed its $1.6 billion third private equity fund, MIC Capital Partners III (Fund III), that will focus on investing in various sectors across North America and Europe.

Fund III exceeded its initial target and raised capital commitments from a number of global institutional investors including global pension funds, government institutions, family offices and private equity investors from across North America, Europe, the Middle East and Asia, Mubadala stated.

Mubadala Capital’s Fund III is focused on direct investments in various core sectors where the team has a strong network and track records like media, sports and entertainment, consumer and food services, financial services, and industrials and business services.

“We began our Private Equity investment practice 13 years ago. The closing of Fund III represents a major milestone for the Private Equity team and also for Mubadala Capital. To have the opportunity to partner with a group of leading institutional investors from across the world is both a privilege for us and a meaningful vote of confidence by the market in our ability to originate compelling new investment opportunities, partner with leading management teams and create value across our portfolio in order to continue delivering strong risk-adjusted returns to our investors.”

Mubadala Capital’s Fund III consists of nearly $1.4 billion of investments across nine high-quality assets, including REEF Technology, YES Network and Peterson Farms, among others.

“The success of our Private Equity business demonstrates the strength of Mubadala Capital and its strategy of generating attractive risk-adjusted returns by combining the benefits of our sovereign ownership whether through sourcing opportunities or value creation as an owner, with a highly focused investment strategy and a well-aligned and motivated team,” Mr. Mattar added. 

The asset management subsidiary opened offices in New York and London in order to better capitalize on investment opportunities and portfolio management in its key markets as well as engage more meaningfully with its global investor base.

Mubadala Capital manages $9 billion of assets in third-party managed funds across its private equity, public equities, venture capital and Brazil businesses, and it is the first sovereign wealth fund to manage third-party capital on behalf of other institutional investors.

Related: Abu Dhabi’s Mubadala Capital partners with BlackRock over private equity fund