Abu Dhabi: Mubadala Capital, Aldar to Tap External Capital for $1 Billion Fund - Bloomberg
Mubadala Capital is preparing to raise third-party capital in its home market for the first time, expanding a model it has used abroad since becoming a rare sovereign wealth fund-owned entity to attract external money for alternative investments.
The asset management arm of Abu Dhabi’s Mubadala Investment Co. is partnering with Aldar Properties PJSC, the emirate’s largest developer, to launch a real-assets investment platform targeting opportunities in the United Arab Emirates and the wider Gulf region, according to a statement on Thursday.
The new venture, Aldar Capital, aims to raise $1 billion for its first fund next year with initial commitments from both partners. It will also target institutional investors, potentially scaling to several billion dollars of assets under management in the coming years.
“We have received significant inbound interest from a number of our existing investors who want exposure to the region,” Hani Barhoush, chief executive officer of Mubadala Capital, said in an interview.
Based in Abu Dhabi’s financial center ADGM, Aldar Capital will invest across residential and office buildings, logistics and other real assets. It will build equity and debt strategies to meet rising demand from regional and international investors, Aldar Group CEO Talal Al Dhiyebi said.
The platform will help transform Aldar from a regional developer, known for projects such as Ferrari World and the Formula 1 racetrack, into a manager of global capital, Al Dhiyebi said. “We want to be recognized as the partner of choice when it comes to real assets in the entire region.”
Aldar Properties is listed in Abu Dhabi and counts a unit of the $330 billion wealth fund Mubadala as one of its top shareholders.
Abu Dhabi’s appeal to billionaires, hedge funds and crypto executives has driven up demand for housing and offices, with apartment prices rising 14% over the past year, according to brokerage JLL.
The emirate is also investing in a Disney theme park, a Sphere arena, new museums and data centers expected to create thousands of jobs and lure new residents.
Founded in 2011, Mubadala Capital has accelerated dealmaking under Barhoush and now manages, advises and administers more than $430 billion in assets. Earlier this year, it sold a minority stake to TWG Global, an investment firm led by Guggenheim Partners founder Mark Walter and financier Thomas Tull. That followed its acquisition of Canadian mutual fund manager CI Financial Corp. in one of the largest privatizations by an Abu Dhabi entity.
Aldar Capital’s initial team will include staff from both Mubadala Capital and Aldar. It aims to start with up to 20 people and plans to expand further over time, Barhoush said.
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