An arm of Abu Dhabi’s sovereign wealth fund is preparing a push into private equity markets, spotting what it believes is an opportunity to take over large holdings as buyout groups race to sell assets and return cash to investors.
Mubadala Capital, the asset management subsidiary of the $302bn sovereign wealth fund, has raised $3.1bn for its latest private equity fund, surpassing a $2bn target.
It is positioning the fund as a solution to private equity groups seeking to exit large bets, or PE-backed companies managing heavy debt burdens that need fresh capital.
Mubadala’s private equity fund generally is seeking to invest between $150mn to $350mn in equity per investment, but will push that investment to as much as $500mn for “great ideas”. It now manages $24bn, three-quarters of which comes from external investors.
“We’re seeing a lot of limited partners are short on liquidity,” said Oscar Fahlgren, chief investment officer of Mubadala Capital, in an interview with the Financial Times. “There’s a focus on realisations by a lot of funds, and that’s driving interesting opportunities for those of us who are well capitalised.”
This year Mubadala Capital has increased its investment pace, striking large deals to buy credit manager Fortress Investment Group, high end baby stroller brand Bugaboo, and Spanish IT consultancy Babel.
No comments:
Post a Comment