Wednesday 13 July 2022

#AbuDhabi Fund Mubadala Deploys Billions Defying Tech Rout - Bloomberg

Abu Dhabi Fund Mubadala Deploys Billions Defying Tech Rout - Bloomberg

An Abu Dhabi sovereign wealth fund is fast emerging as a white knight for tech firms seeking funds in a volatile market.

Mubadala Investment Co., the $284 billion state-owned fund, is defying a rout in technology valuations and becoming a go-to investor in a sector where fortunes have turned overnight. The investor backed raises this week for both Klarna Bank AB and Wefox.

Mubadala is committing its capital at a time its owner, the Abu Dhabi government, benefits from a surge in oil prices driven mainly by the war in Ukraine. The Gulf fund is stepping in to invest in technology-focused businesses just as other investors turn away from what they see as risky and potentially overpriced assets.

“As a long-term investor, Mubadala continues to deploy capital opportunistically across a range of key sectors,” a spokesperson for the fund said.

It led the latest funding round for German insurance-technology firm Wefox, which raised $400 million at a valuation of $4.5 billion this month. The fund also came in as a new investor in the $800 million raise by Klarna, the buy-now-pay-later giant, that saw its valuation plunge to $6.7 billion from the $45.6 billion achieved last year.

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