Mubadala Seeks to Manage More External Capital and Forms Mubadala Capital Solutions

Posted on 09/18/2023

Mubadala Capital is the wholly owned asset management subsidiary of Mubadala Investment Company. Mubadala Capital announced the launch of a new business: Mubadala Capital Solutions, including an investment by Apollo Management (NYSE: APO) in its new evergreen Solutions strategy. The new platform offers bespoke solutions to investors, with a particular focus on institutional investors and family offices, and will invest globally across asset classes, providing access to a range of proprietary private market investment opportunities.

The Mubadala Capital Solutions platform is comprised of three fully integrated strategies to provide investors with access to a range of best-in-class fund managers and direct opportunities, including through tailored investment products.

The first strategy within the Mubadala Capital Solutions platform is a highly diversified evergreen investment product focusing on private market opportunities. The investment strategy has been seeded with a US$ 2.7 billion diversified portfolio from Mubadala Capital’s balance sheet with features that include low volatility, meaningful embedded downside protection, an cash yield on day one and the potential for strong asset appreciation over time. The strategy leverages Mubadala Capital’s access, existing infrastructure and track record to offer investors the opportunity to invest alongside Mubadala, the Sovereign Wealth Fund.

The second strategy is focused on Separately Managed Accounts, which provides investors with access to customized and tailored investment portfolios that meet their specific investment criteria, risk-appetite and liquidity requirements.

Finally, Abu Dhabi Catalyst Partners, a joint venture between Mubadala Capital and Alpha Wave, was recently integrated into Mubadala Capital, forming the third strategy within the new Solutions platform. Established in 2019, Abu Dhabi Catalyst Partners invests in investment firms and industry leading businesses that will benefit from developing a meaningful and sustainable presence in the Abu Dhabi Global Market. Launched with an initial allocation of US$ 1 billion in 2019, Abu Dhabi Catalyst Partners now has around US$ 1.7 billion of assets under management.

Mubadala Capital Solutions is co-headed by Maxime Franzetti, a founding member of Mubadala Capital, and Fatima Al Noaimi, previously a senior member of Mubadala Capital’s Private Equity business.

Commenting on the launch of Mubadala Capital Solutions, Hani Barhoush, Managing Director and CEO of Mubadala Capital, said in a press release, “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. This new platform will leverage the full breadth of our global network and existing portfolio to create tailored investments solutions, giving our partners access to proprietary investments that are not typically available through traditional investment channels.

Over the years, Mubadala has developed a deep, broad, and multi-faceted partnership with Apollo, and we are excited to expand that partnership into this new platform.”

Mubadala Capital Solutions builds on Mubadala Capital’s three existing businesses across Private Equity, Venture Capital, and a special opportunities strategy in Brazil. The firm today manages around US$ 20 billion of assets in aggregate across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors. Mubadala Capital has offices in Abu Dhabi, London, New York, San Francisco, and Rio de Janeiro.

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