TWG Takes Stake in Mubadala Capital With $2.5 Billion Commitment - Bloomberg
The investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull will take a minority stake in Mubadala Investment Co.’s asset management subsidiary, the second time an outside investor has been allowed to own a piece of the Abu Dhabi fund in recent months.
As part of the deal, TWG Global is committing $2.5 billion to Mubadala Capital, which, in turn, is anchoring and leading a $10 billion syndicated investment in TWG, according to a statement. That investment is part of TWG’s $15 billion equity raise, the companies said.
Mubadala Capital was set up 14 years ago as the sovereign fund’s alternative asset management arm. It manages around $30 billion in assets and, in 2017, became the first sovereign wealth fund to manage third-party capital on behalf of global institutional investors.
But TWG’s acquiring of a stake in the unit represents a rare case of a sovereign wealth fund relinquishing part ownership to an external investor. In December, Mubadala Capital added three new equity owners to its platform as part of a deal it did with the credit asset manager Silver Rock, which was the first time it allowed external shareholders into the ownership of the business.
Mubadala Capital Chief Executive Officer Hani Barhoush said the combination of “institutional expertise and capital resources” would strengthen the ability of both firms to access better investment opportunities. TWG, its partners and clients also committed to investing an additional $20 billion of capital over time to strengthen the ties between the two firms.
Sovereign wealth funds like Mubadala were set up to invest their state owner’s oil revenue surplus and help diversify the country’s economy. With $330 billion in assets, it’s the second-largest such fund after the $1 trillion Abu Dhabi Investment Authority and has in recent years deployed billions of dollars in sectors ranging from finance to entertainment and health care.
For its part, TWG has been making a push into artificial intelligence, recently striking a partnership with data-analysis software firm Palantir Technologies Inc. to expand AI commercial capabilities across financial institutions.
Mubadala has also been investing in the technology and is one of the founding partners of MGX, an Abu Dhabi-based firm that’s part of the $100 billion joint venture that’s funding AI infrastructure recently unveiled by US President Donald Trump.
TWG’s holdings also include Guggenheim Investments and prominent sports franchises such as the LA Dodgers, LA Lakers and Chelsea F.C., according to its website.
Walter, who co-founded Guggenheim Partners in 1999, has a net worth of $10.5 billion, according to the Bloomberg Billionaires Index. Guggenheim was a pioneer in raising permanent capital through insurance relationships.
Billionaire Tull cemented his fortune by selling Legendary Pictures, the production company behind films like The Hangover and The Dark Knight.
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