BlackRock to invest $400M in mubadala Capital

The investment company BlackRock to invest $400M in mubadala Capital, the asset management subsidiary of Mubadala Investment Company (Mubadala).

The BlackRock-led investment was made into a portfolio of assets currently managed by Mubadala Capital, in addition to a $400 million commitment into Mubadala Capital’s third private equity fund (Fund III).

The partnership between BlackRock and Mubadala Capital was formed simultaneously with the successful final close of BlackRock’s US$3 billion Secondaries and Liquidity Solutions (SLS) strategy, which is one of the largest fundraises for an inaugural private equity secondaries strategy globally to date.

The company BlackRock’s SLS strategy aims to lead and invest opportunistically in mid-sized secondary transactions, and SLS led this transaction with notable interest and involvement from various strategic partners and co-investors. BlackRock’s team had developed a conviction around Mubadala Capital and the underlying portfolio, which BlackRock believes will be a key and core investment in its SLS strategy.

BlackRock Inc. secondaries and liquidity solutions group is building up its ties with Abu Dhabi’s sovereign-wealth investor Mubadala Investment Co., leading a $1.2 billion deal that includes the purchase of secondhand assets from a fund its investment arm Mubadala Capital manages.

The head of private equity at Mubadala Capital, Adib Martin Mattar, said:

“BlackRock’s institutional approach to underwriting and partnership-orientation has helped create what we expect to be a landmark transaction, especially in a highly uncertain market environment. We are looking forward to a long-term partnership with BlackRock SLS and all participating investors.”

The managing director of the BlackRock secondaries and liquidity solutions team, Veena Isaac, said:

“Completing this investment was highly collaborative between BlackRock, our partners and Mubadala Capital. We look forward to being a Limited Partner and continuing to explore further ways to collaborate with Mubadala Capital in what is clearly a highly differentiated investment platform that has demonstrated an ability to leverage its sovereign access and network for the benefit of its investors.”