Abu Dhabi's Mubadala concedes majority stake in $2.5B equity portfolio to French firm

Published April 24th, 2017 - 05:00 GMT
The French private equity firm will invest $1.75 billion to acquire a majority stake in an existing $2.5 billion Mubadala equity portfolio (AFP/ File)
The French private equity firm will invest $1.75 billion to acquire a majority stake in an existing $2.5 billion Mubadala equity portfolio (AFP/ File)

UAE-based Mubadala Development Company said its financial investment arm has announced a $2.5-billion investment deal with French private equity firm Ardian, which includes the creation of a private equity fund.

Read more: Abu Dhabi's Mubadala, IPIC Investment Funds To Merge

As per the agreement, Ardian will invest $1.75 billion to acquire a majority stake in an existing $2.5-billion Mubadala Capital private equity portfolio, which includes interests in predominantly North American buyout and growth funds, as well as 14 direct investments, said The National in its report.

Ardian, which manages about $60 billion worth of assets, will also invest $750 million in a new $1.5 billion portfolio established by Mubadala Capital.

The new fund will focus on "partnering with best-in-class management and investment teams across multiple sectors, including sports, media, entertainment, consumer food, energy infrastructure and others" in North America and Europe, stated the report citing a Mubadala statement.

Read more: Mubadala, Eshraq Properties Launch Real Estate JV In Abu Dhabi

The transaction, which closed on March 31, is the first time that Mubadala Capital has accepted money from a third-party investor, said The National report.

The Ardian partnership comes after reports circulated last year that Mubadala Capital was in discussions to launch a fund to co-invest with outside partners on private equity deals, with reports of discussions between the two parties surfacing in January, it added.


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