Apollo backs Mubadala Capital’s bespoke investments

Mubadala Capital has launched new bespoke investment solutions that appeal to family offices and institutions and will invest globally across asset classes.

The platform, which has already secured investment from Apollo Global Management, offers access to a range of proprietary private market investment opportunities.

“The Mubadala Capital Solutions platform is comprised of three fully integrated strategies to provide investors with access to a range of best-in-class fund managers and direct opportunities, including through tailored investment products,” the Abu Dhabi-based asset manager said in a statement.

The asset manager is seeding the first strategy within its Mubadala Capital Solutions unit with $2.7bn from its balance sheet, with features that include low volatility, embedded downside protection, and the potential for strong asset appreciation over time.

“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,” said Hani Barhoush, managing director and CEO of Mubadala Capital.

“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.”

The unit will also run separately-managed accounts for investors with specific risk and liquidity requirements, under its second strategy.

Abu Dhabi Catalyst Partners, a venture between Mubadala Capital and Alpha Wave that has $1.7bn in assets under management will run the third strategy, investing in firms in the emirate’s international financial free zone. Founded in 2019, Abu Dhabi Catalyst Partners invests in top-tier investment firms and industry-leading businesses.

The investment platform is co-headed by Maxime Franzetti, a founding member of Mubadala Capital, and Fatima Al Noaimi, previously a senior member of Mubadala Capital’s Private Equity business.

Mubadala expands portfolio

Over the years, Mubadala has developed a deep, broad, and multi-faceted partnership with Apollo. The bespoke investment solution builds on the asset manager’s three existing businesses across private equity, venture capital, and a special opportunities strategy in Brazil.

The firm manages $20bn assets in aggregate across its balance sheet investments and in third-party capital vehicles on behalf of institutional investors.

Mubadala and Apollo agreed to focus on private credit investment opportunities and deal origination across asset classes last February.

Earlier in January, the Abu Dhabi wealth fund formed a joint venture with Alpha Dhabi to lend about $2.5bn over the next five years through a private credit platform that will leverage the sovereign fund’s partnership with Apollo.

Mubadala holds 80 per cent ownership in the Abu Dhabi Global Market-based joint venture entity, with the remaining 20 per cent to be held by Alpha Dhabi.

Read: Mubadala commits $1bn to Blue Owl Capital’s credit platform