Mubadala closes $1.6bn third private equity fund

The MIC Capital Partners III fund received investment commitments from a number of global institutional investors

Mubadala Capital, the asset management subsidiary of Abu Dhabi’s sovereign fund, closed its MIC Capital Partners III fund. supplied

Mubadala Capital, the asset management subsidiary of Abu Dhabi’s sovereign fund Mubadala, closed its $1.6 billion third private equity fund that will focus on investing in sectors including media, sports, consumer and food services across North America and Europe.

The MIC Capital Partners III fund, exceeded its fund-raising target after securing commitments from a number of global institutional investors including global pension funds, government institutions, family offices and private equity investors, Mubadala Capital said in a statement on Tuesday.

It is a "meaningful vote of confidence by the market in our ability to originate compelling new investment opportunities, partner with leading management teams and create value across our portfolio”, said Adib Mattar, head of private equity at Mubadala Capital.

Earlier this month, Mubadala Capital said it received a “significant” investment into its private equity business from a consortium led by the world's biggest asset manager BlackRock.

BlackRock’s Secondaries and Liquidity Solutions (SLS) and a group of global institutional investors have invested in assets managed by Mubadala Capital. The consortium also committed $400 million to Mubadala Capital’s private equity Fund III, it said at the time.

Mubadala Capital has so far invested $1.4bn through the fund in a number of companies including North America’s REEF technology, Yes Network and Peterson Farms.

As well as managing its own investments, Mubadala Capital oversees about $9bn in third-party managed funds across its private equity, public equities, venture capital and Brazil businesses.

In addition to successful exits from EMI Music Publishing and Restaurant Brands International, Mubadala Capital has a long track record of strategic investments, leveraging the secondary market to seek attractive returns for its investors.

Its parent, Mubadala, which has an asset base of Dh894bn ($243.4bn), invests on behalf of the Abu Dhabi government. The sovereign fund is driving the emirate’s efforts to diversify its revenue base and generate income from sources other than oil.