Mubadala Capital launches investment business with asset manager Apollo as backer

New platform aims to offer 'bespoke solutions'

Mubadala headquarters in Abu Dhabi. Mubadala Capital currently manages $20 billion in assets. Victor Besa/The National

Mubadala Capital, the asset management subsidiary of Mubadala Investment Company, has launched an investment business with the aim of attracting institutions and family offices, with global alternative asset manager Apollo as a backer.

Mubadala Capital Solutions aims to offer "bespoke solutions" and will invest globally across asset classes, providing access to a range of proprietary private market opportunities, the company said on Thursday.

“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,” managing director and chief executive Hani Barhoush said.

"This new platform will leverage the full breadth of our global network and existing portfolio to create tailored investment solutions, giving our partners access to proprietary investments that are not typically available through traditional investment channels.”

Mubadala Capital Solutions comprises three strategies including a “highly diversified evergreen investment product” focused on private market opportunities.

The investment strategy has been seeded with a $2.7 billion diversified portfolio from Mubadala Capital’s balance sheet with features that include "low volatility, meaningful embedded downside protection, an attractive cash yield on day one and the potential for strong asset appreciation over time", the company said.

It leverages Mubadala Capital’s access, existing infrastructure and track record to offer investors the opportunity to invest alongside Mubadala.

The second strategy as part of the Mubadala Capital Solutions platform is focused on “separately managed accounts”, which provides investors with access to “customised and tailored investment portfolios” that meet their specific investment criteria, risk-appetite and liquidity requirements.

Abu Dhabi Catalyst Partners, a joint venture between Mubadala Capital and Alpha Wave, was integrated into Mubadala Capital, forming the third strategy within the new solutions platform, the company said.

Set up in 2019, ADCP invests in top-tier investment firms and businesses that would benefit from their presence in the Abu Dhabi Global Market. Launched with an initial allocation of $1 billion, ADCP now has $1.7 billion worth of assets under management.

Mubadala Capital Solutions, co-headed by Maxime Franzetti, a founding member of Mubadala Capital, and Fatima Al Noaimi, builds on Mubadala Capital’s three existing businesses across private equity, venture capital and a special opportunities strategy in Brazil.

Mubadala Capital currently manages $20 billion in assets across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors. It has offices in Abu Dhabi, London, New York, San Francisco and Rio de Janeiro.

In December, it announced a $2.1 billion private equity partnership transaction with France's private investment house Ardian.

Earlier this month, it also signed an initial agreement with Brazil’s Petrobras to potentially invest in a biofuel project.

In February last year, the New York-listed Apollo Global Management and Mubadala Investment Company said they were expanding their global partnership to further build capabilities to originate transactions across asset classes.

"Mubadala and Mubadala Capital ... have built an extensive global network and capabilities in private markets, which we believe offer tremendous long-term growth and opportunity," said Apollo co-president Jim Zelter.

As of June 30, 2023, Apollo had approximately $617 billion of assets under management.