Mubadala Capital enters $2.1bn equity partnership with Paris-based Ardian

Under the pact, the French company will invest in a portfolio of high-quality private equity assets managed by Mubadala Capital

Mubadala Capital has grown significantly in scale over the past decade, with offices around the world. Photo: Mubadala

Mubadala Capital, the asset management subsidiary of Abu Dhabi’s Mubadala Investment Company, on Thursday announced a $2.1 billion private equity partnership transaction with France's private investment house Ardian.

Under the agreement, Ardian will invest in a portfolio of high-quality private equity assets managed by Mubadala Capital. It will also make a primary commitment to Mubadala Capital’s private equity funds.

As part of the latest transaction, Ardian and Mubadala Capital have curated a portfolio of 10 limited partnership interests with a leading group of general partners predominantly in North America and Europe, as well as six high-quality direct investments, the entities said in a statement.

All of the assets in the new portfolio were previously held on Mubadala Capital’s balance sheet, following a successful spin-off from Mubadala Investment Company in 2021.

“This transaction is a significant vote of confidence in our ability to create value for our investors and partners by executing against our strategy and differentiated approach to the private equity market,” said Hani Barhoush, managing director and chief executive of Mubadala Capital.

Evercore acted as the exclusive financial adviser to Mubadala Capital on the transaction.

Mubadala Capital’s private equity strategy focuses on direct investments in North America and Europe in core sectors, including media, sports and entertainment, consumer and food services, financial services and business services.

Mubadala Capital is the wholly owned asset management subsidiary of Mubadala Investment Company — a $284 billion global sovereign investor based in the UAE capital.

It manages nearly $17 billion in aggregate across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors, including four private equity funds, three early-stage venture funds and two funds in Brazil focused on special situations.

“This transaction is the culmination of a highly collaborative and close working relationship with Mubadala Capital over the past five years,” said Mark Benedetti, member of the Ardian executive committee and co-head of Ardian US.

“They are a well-respected team with an established track record, and this latest transaction is indicative of the importance we place on being a valuable long-term partner.”

Ardian, which has more than 990 employees spread across 15 offices in Europe, the Americas and Asia, manages or advises $140 billion in assets on behalf of more than 1,400 clients globally.

In April 2017, Mubadala entered into a $2.5 billion investment deal with Ardian, which also included the creation of a private equity fund.