Dubai: The wealth fund Mubadala delivered Dh72 billion to the Abu Dhabi Government, its biggest shareholder, in 2020 compared to Dh53 billion a year ago. This is the largest ‘total comprehensive income’ delivered by Mubadala since its formation.
This was driven by “significant growth in Mubadala’s public equities portfolio and funds, as well as the company’s assets across various sectors”. The UAE and the US retain the biggest share of the portfolio. In addition, there's been new capital deployment in India (such as in Reliance Industries). There have also been investments through its sovereign partnerships in France, China and Russia.
At year-end, assets under management were Dh894 billion compared to Dh853 billion in 2019.
Other significant investments included new commitments with Apax Partners, Citadel, iSquared Capital and CVC.
“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth," said Khaldoon Al Mubarak, Managing Director and CEO. "We increased our investments in sectors where we have high conviction, and with high performing fund managers.
"Technology and life sciences in particular have been essential to the world over the last year, and we see those sectors bringing greater opportunity for deeper investment. We have worked to be well-positioned in these areas and in key geographies as the global economy continues to recover.”
- Assets under management in 2020 reached Dh894 billion (Dh853 billion in 2019).
- 34% of Mubadala’s portfolio is comprised of direct and indirect investments in private equity, with 29% in public markets and 14% in real estate and infrastructure.
- In 2020, Mubadala realized Dh104 billion in monetization of mature assets and distributions from investments locally and abroad, including Dh16.7 billion through the sale of a 39% stake in Borealis to OMV, its largest-ever single monetization.
In 2020, we took advantage of the historically low interest rates to lower our cost of borrowing and extend its weighted average life on the back of strong investor demand for our bond issuances. We continue to maintain a prudent gearing ratio standing at 9.1% and a strong cash position as we manage through this economic cycle with a long-term view.