Wednesday 11 October 2023

#AbuDhabi’s Mubadala Plans to Invest $1 Billion a Year in Brazil - Bloomberg

Abu Dhabi’s Mubadala Plans to Invest $1 Billion a Year in Brazil - Bloomberg

Mubadala Capital, the investment arm of Abu Dhabi’s sovereign wealth fund, is bullish on Brazil’s growth prospects under President Luiz Inacio Lula da Silva and plans to invest more than $1 billion a year to expand its holdings in the country that range from an oil refinery to a toll road.

More than a decade after coming to Brazil to invest in then-billionaire Eike Batista’s commodities empire, the firm has deployed more than $5 billion in the country, Oscar Fahlgren, the head of Mubadala Capital in Brazil, said in an interview. The scale and potential for returns in Brazil make it the most attractive location in South America, he said.

“GDP is growing more than expected, and we’ve seen political stability since the new administration took over,” he said in a video call. “The climate in the international community is warming towards Brazil, and that’s ultimately a beneficial environment to be in.”

The firm just closed a second Brazil-specific fund with more than $710 million, more than double its first fund, and it should start raising capital for an even larger fund in 2024, Fahlgren said.

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