BlackRock Invests in Mubadala Capital’s Private Equity World
Posted on 08/11/2021
Abu Dhabi-based Mubadala Capital is the asset management subsidiary of Mubadala Investment Company.
BlackRock’s Secondaries and Liquidity Solutions group and a consortium of global institutional investors revealed plans to invest in a portfolio of assets, managed by Mubadala Capital, alongside a US$ 400 million commitment into Mubadala Capital’s third private equity fund (Fund III). Mubadala Capital Private Equity Fund III had a final close of US$ 1.6 billion. BlackRock and two unknown limited partners made up the US$ 700 million commitment part of the SLS deal.
Mubadala Capital manages around US$ 9 billion of assets in third-party managed funds across its private equity, public equities, venture capital, and Brazil businesses.
The deal gives Mubadala flexibility, meaning it can put part of a private equity deal on its balance sheet and the other portion in a fund vehicle that would be open to other investors.
This partnership was formed in parallel with the final close of BlackRock’s US$ 3 billion Secondaries and Liquidity Solutions (SLS) strategy in March 2021. More than 70 institutional investors around the world committed capital to the fundraise, including public and private pension funds, insurance companies, sovereign wealth funds, endowments, foundations, family offices and high-net-worth individuals. Institutional investors who participated in the fundraise include new and existing investors to BlackRock Private Equity Partners as well as BlackRock Alternative Investors. Through the SLS strategy, BlackRock seeks to invest in mid-sized secondary transactions. SLS is highly selective in seeking top risk-return opportunities across both traditional and non-traditional secondaries, including single and multi-fund portfolios, manager-led restructurings, and other opportunistic investments.
Earlier, BlackRock formed a late-stage and early-growth private equity platform with Temasek Holdings called Decarbonization Partners.
Mubadala is not a novice to these types of transactions. In 2017, French manager Ardian SA committed US$ 2.5 billion to Mubadala Capital.