Mubadala’s assets under management surged to $302bn in 2023

Abu Dhabi’s sovereign investor boosts investments in AI, life sciences and clean energy to grow its portfolio

Mubadala capitalised on market opportunities last year to execute its monetisation strategy. Photo: Mubadala

Mubadala Investment Company, Abu Dhabi’s strategic investment arm, saw a 9.5 per cent increase in its assets under management last year as the company continues to boost investments in industries shaping the future, including artificial intelligence and clean energy.

Mubadala’s total assets under management in 2023 climbed to Dh1.11 trillion ($302.2 billion), the company said on Friday.

It made investments worth Dh89 billion in AI, technology, digital infrastructure, life sciences and clean energy while growing its private credit business to grow its portfolio during the period.

The company said it capitalised on market opportunities to execute its monetisation strategy, generating total proceeds of Dh99 billion for the year, amid “divestments of certain legacy assets and capital recycling into priority investment areas”.

Its portfolio mix broadly remained “similar year on year,” with 38 per cent direct and indirect in private equity, 25 per cent in public markets and 16 per cent in real estate and infrastructure.

Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister, Chairman of the Presidential Court and chairman of Mubadala, said the company has been contributing to supporting the UAE national agenda and enhancing its development for the past two decades.

“Alongside its active and constructive contribution to the global economy, Mubadala adopts a forward-looking vision aimed at developing a knowledge-based and innovative national economy,” Sheikh Mansour said.

Khaldoon Al Mubarak, managing director and group chief executive of Mubadala, said: “Mubadala had a strong year across the portfolio, making investments in areas essential to growth and innovation around the world.”

“Globally, we continue to strengthen our presence and partnerships in key markets, ramping up investments across a range of sectors in line with our convictions.”

Sheikh Mansour praised Mubadala's efforts in providing opportunities for Emirati nationals and residents from more than 200 different nationalities.

“We are pleased to see many outstanding individuals who began their careers in the company now leading institutions and vital initiatives that contribute to shaping the future of our national economy, and our leadership in globally significant fields and issues.”

Mubadala, which invests on behalf of the Abu Dhabi government, is at the heart of the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.

Its portfolio spans six continents with interests in multiple sectors and asset classes.

Some of the investments made by Mubadala last year include in Aligned, one of the fastest-growing data centre providers in the Americas, and the acquisition of a stake in GlobalConnect, a fibre-based data communication and data centre services provider serving enterprises, public institutions and consumers in northern Europe.

Mubadala also announced it would acquire Fortress Investment Group from Softbank and that the deal was completed this week.

Other deals made by the company include buying a 50 per cent stake in the Big Beau combined solar and battery storage in California from EDF Renewables North America and an investment in CoolIT Systems in partnership with global investment firm KKR.

In Asia, Mubadala-owned GlobalFoundries announced the official opening of a $4 billion semiconductor fabrication plant in Singapore, while Mubadala Energy made one of the largest natural gas discoveries in Indonesia, with the potential of up to 170 billion cubic metres.

In the UAE, Mubadala founded Space42, a space and satellite technology company, and M42, an integrated healthcare company, both with Abu Dhabi’s technology group G42.

Mubadala also expanded its private credit business during the year. It formed a joint venture with Ares to invest about $1 billion in the private credit space amid new opportunities in the sector.

It also created a long-term partnership with Apollo to invest alongside partners up to Dh9 billion over the next five years in credit opportunities.

Demand for private credit – lending to companies by financial institutions other than banks – has grown significantly in recent years.

Unlike most bank loans, private credit solutions can be modified to meet borrowers’ needs in terms of size, type or timing of transactions.

The size of the private credit market is estimated to grow to $2.3 trillion by 2027, from about $1.4 trillion at the start of 2023, according to a report by Morgan Stanley.

“In 2023, global markets experienced significant turbulence across various sectors and industries, driven by rising interest rates, inflationary pressures, geopolitical tensions and supply chain disruptions,” Mubadala's group chief financial officer Carlos Obeid said.

“Despite these challenges, our five-year rate of return stood at 10.3 per cent.”

Mubadala will continue to focus on high-potential sectors and geographies, including North America, Asia and Europe to ramp up its investments in technology, digital infrastructure and the energy transition.

“The growth is in the East today, and if I look at the next 10 to 20 years, where we see growth, it's also coming in Asia – it’s in India, it's in South-east Asia,” Mr Al Mubarak told the Milken Institute Middle East and Africa Summit last year.