Alternative Investments
PLAY VIDEO
"Based on the success of the underlying businesses, the Alternative Investments & Infrastructure platform continues to play a central role in driving forward Mubadala's vision for the future, as we establish strong positions in sectors that represent bold new frontiers for global investment."
Deputy Group CEO and CEO,
Alternative Investments & Infrastructure
Strategy in Action
Mubadala Capital's Private Equity business manages a series of direct investments and fund commitments on behalf of Mubadala Investment Company, in addition to three funds on behalf of Mubadala and certain third party institutional investors.
Strategy in Action
In October, Mubadala Capital launched its first MENA-focused tech investment funds with a total of
The funds will capitalize on the growing startup scene in the region while empowering tech talent in the UAE, and supporting Abu Dhabi's economic development and transformation into a regional technology hub. The funds include a
“fund of funds” program, which invests in funds that are committed to supporting the Abu Dhabi-based Hub71 ecosystem. The investment program also includes a further
fund dedicated to direct investments in early stage technology companies that are committed to be part of Hub71.
Strategy in Action
Mubadala Real Estate & Infrastructure manages a diverse portfolio of real estate and infrastructure investments.
During the year, the Real Estate Investments team continued to expand its global footprint of direct investments, emphasizing diversification by geography, sector, investment style, and varied deployments across the capital stack. The team targeted lower volatility residential and logistics opportunities, while also selectively monetizing positions in retail and office, a “late-cycle” investment bias adopted to deliver attractive and sustainable returns to Mubadala.
Meanwhile, the Infrastructure Investments team concluded a number of significant transactions and expanded its resources to begin deploying into international markets, with a focus on direct co-investment opportunities within the OECD countries.
2019 also saw the establishment of the UAE Development team with a mandate to consolidate and develop Mubadala Real Estate & Infrastructure's UAE land bank and projects under construction.
Strategy in Action
The Credit business' strategy is focused on investing in senior secured middle-market loans sourced through off-market partnerships in North America and Europe. The business, which today has over
added its fourth partnership with the Bank of Montreal in 2019.
Portfolio Highlights
Cleveland Clinic Abu Dhabi broke ground on the seven-story,
in April 2019 and is due to open in 2021 and will feature the latest facilities and equipment. The center will be modeled on Cleveland Clinic Ohio's Taussig Cancer Center, which is ranked fifth in the US for cancer care.
Deputy Group CEO and CEO,
Alternative Investments & Infrastructure
Our 2019 performance was characterized by continued positive momentum across the Alternative Investments & Infrastructure platform.
The private equity and venture capital businesses demonstrated excellent growth across international markets, based on increased deal flow and strong performance throughout our portfolio. This was supported by impressive results from our public investments, which successfully traversed a volatile market as we continued to source new investment opportunities in a range of sectors and geographies.
Focused on diversification, the credit team delivered value despite challenging market conditions. By working closely with its network of best-in-class partners, the business is well-positioned to deliver attractive, sustainable returns in the years ahead.
Last year, we made excellent progress in expanding our portfolio of investments, with the launch of our first US $250 million MENA-focused tech fund being one of 2019's notable successes. Our overarching aim is to build a flourishing tech ecosystem in Abu Dhabi by investing in local startups and Venture Capital, and our partnership with Hub71 continues to bear fruit in bringing quality startups to the Emirate.
Internationally, the ventures team continues to advance its strategy through direct investments and across its fund of funds business. We appointed a high-caliber senior leadership team in Europe with a mandate to invest in founder-led, high growth technology companies with global scale and impact through our US $400 million fund.
Meanwhile, in the United States we made a series of investments in exciting startups that have strong growth potential across a number of industries including life sciences, healthcare, mobility, FinTech and artificial intelligence sectors.
Likewise, Mubadala Healthcare also achieved a series of impressive milestones in 2019. Most notably, Cleveland Clinic Abu Dhabi, our flagship asset, celebrated the groundbreaking of a major new 17,000 square meter cancer treatment center in Abu Dhabi, which will add to its position as the regional leader in pioneering specialist healthcare services.
Mubadala Real Estate and Infrastructure maintained healthy yields despite macroeconomic headwinds. The team pursued a range of attractive international investment projects providing strong fundamentals, including commercial and residential properties as well as logistics. We also made encouraging headway in our plan to diversify investments across industrial, residential and retail assets to manage downside risk and play to Mubadala's strength as a long-term investor.
Our Sovereign Investment Partnerships went from strength to strength in 2019 as we increased our co-investments program with a series of new commitments across key markets.
Based on the success of the underlying businesses, the Alternative Investments & Infrastructure platform continues to play a central role in driving forward Mubadala's vision for the future, as we establish strong positions in sectors that represent bold new frontiers for global investment.
