Mubadala launches capital solutions business, taps Apollo as investor
The new platform offers bespoke solutions to institutional investors and family offices
Dubai: Mubadala Capital, a subsidiary of Mubadala Investment Company, has introduced a new business venture called Mubadala Capital Solutions. This initiative includes an investment collaboration with Apollo for its Solutions strategy, Mubadala said in a statement on Thursday.
Mubadala Capital Solutions will offer customized investment solutions primarily for institutional investors and family offices, with a global focus across various asset classes.
This platform consists of three integrated strategies, allowing investors to access fund managers and investment opportunities tailored to their needs.
The first strategy focuses on a diversified evergreen investment product, emphasizing private market opportunities. It starts with a $2.7 billion portfolio from Mubadala Capital's balance sheet, offering low volatility, downside protection, immediate cash yield, and potential asset appreciation.
The second strategy is dedicated to Separately Managed Accounts, offering customized investment portfolios based on specific criteria, risk tolerance, and liquidity preferences.
Lastly, Abu Dhabi Catalyst Partners, a joint venture between Mubadala Capital and Alpha Wave, has merged into Mubadala Capital, forming the third strategy. This entity invests in top-tier firms and businesses seeking a presence in the Abu Dhabi Global Market. Launched with $1 billion in 2019, it now manages approximately $1.7 billion in assets.
Mubadala Capital Solutions will be co-headed by Maxime Franzetti, a founding member of Mubadala Capital, and Fatima Al Noaimi, previously a senior member of Mubadala Capital’s Private Equity business.
“The launch of Mubadala Capital’s new Solutions platform builds on our track record of generating attractive risk-adjusted returns for investors through our various funds and investment strategies,” said Hani Barhoush, Managing Director and CEO of Mubadala Capital. “This new platform will leverage the full breadth of our global network and existing portfolio to create tailored investments solutions, giving our partners access to proprietary investments that are not typically available through traditional investment channels.”
Over the years, Mubadala has developed a deep, broad, and multi-faceted partnership with Apollo, and we are excited to expand that partnership into this new platform.
The firm today manages c. $20 billion of assets in aggregate across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors.
“Mubadala and Mubadala Capital are one of the most sophisticated investment partners and we are pleased to build on our longstanding relationship through this commitment,” said Apollo Co-President Jim Zelter. “They have built an extensive global network and capabilities in private markets, which we believe offer tremendous long-term growth and opportunity.”
Mubadala has been building up its asset management arm to run about $20 billion for itself and outside investors.
Apollo, meanwhile, has teamed up with Mubadala on several ventures since agreeing to work together in 2020, including a $2.5 billion private credit platform earlier this year.