Mubadala buys stake in New York-based Phoenician Capital

Phoenician Capital is a global value investor that's outperformed S&P500 in past two years

Khaldoon Al Mubarak, chief exuecutive of Mubadala. The group has had an outstanding year. Pawan Singh / The National

Mubadala Investment Company, Abu Dhabi’s state-run strategic investment firm that has over $200 billion in assets, acquired an undisclosed minority stake in Phoenician Capital, a New York-based investment management company.

The purchase, the financial terms of which weren’t disclosed, was made through Mubadala Capital, Mubadala’s financial investment arm.

“Phoenician Capital has built a strong international reputation for its value investing strategies, based on a consistent track record of delivering attractive risk adjusted returns,” said Maxime Franzetti, head of public investments for Mubadala Capital.

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The firm’s value-orientated investment strategy was developed by John Khabbaz, Phoenician Capital’s managing partner, while attending Columbia Business School and put to use while he built the firm. that focuses on investing in global value-orientated, high growth companies. Phoenician Capital generated returns of 40.8 per cent and 33 per cent in 2016, outperforming the S&P500 index, the benchmark measure of US equities, which increased 12 per cent and 21.8 per cent.

“We are honoured to partner with Mubadala as Phoenician expands its institutional base and enters its next phase of growth,” Mr. Khabbaz said.

Mubadala, which is active in 13 industries and 30 countries around the world, places emphasis on forging partnerships with organizations that have high standards of governance and has been active in recent months in striking deals. Last month, Mubadala and Greece’s New Economy Development Fund (Taneo) said they will set up a 400m euros platform to co-invest in the European country. Under the terms of the agreement, both parties will chip in 200m euros each to the co-investment platform.