Mubadala Capital, an arm of Abu Dhabi’s state fund Mubadala, has announced a transaction with European fund manager Ardian, which marks the first time Mubadala Capital has accepted capital from third party investors.
Ardian has committed $2.5bn to the transaction through a secondary/primary structure. The secondary component involves Ardian acquiring an interest in an existing Mubadala Capital managed private equity portfolio. The primary component involves Mubadala Capital’s establishment of a new private equity fund, in which Ardian will be a lead investor.
The secondary portfolio is comprised of an existing $2.5bn private equity pool of Mubadala Capital owned and managed assets that includes 14 LP interests in predominantly North American buyout and growth funds, and 14 direct investments, including a number of co-investments alongside renowned GPs.
Ardian has acquired a majority stake in the portfolio with Mubadala Capital retaining the remaining interest.
Mubadala Capital has also established a new $1.5bn private equity fund with equal primary capital commitments from Mubadala Capital, and Ardian. Mubadala Capital will invest the new fund using the same value-oriented investment strategy that was used to create the secondary portfolio.
This strategy involves an integrated approach to making direct investments, co-investments and fund commitments, primarily in North America and Europe. The focus will continue to be on partnering with best-in-class management and investment teams across multiple sectors, including sports, media, entertainment, consumer food, energy infrastructure and others.
Mubadala Capital, which is registered within Abu Dhabi Global Market (ADGM), the international financial center in the UAE capital, was established in 2011 to create a global asset management platform based in Abu Dhabi, and it has been investing in private equity since its inception. Mubadala Capital may take on third-party capital for other areas of its business in the future.
Vincent Gombault, member of the executive committee, head of Funds of Funds and Private Debt at Ardian, said: “This deal represents one of Ardian’s largest transactions with a sovereign wealth fund. We look forward to developing our relationship with Mubadala Capital, and continuing to support their team going forward.”