Abu Dhabi's Mubadala Development has announced the creation of a €300 million (Dh1.51 billion) investment platform in conjunction with CDC International Capital (CDC I Capital), the investment arm of France's sovereign wealth fund Caisse des Dépôts.
The agreement between the two parties was signed in Paris on Tuesday, each agreeing an initial commitment of €150m.
Mubadala said the as-yet unnamed platform “has been created to target attractive long term returns through investments across a diverse range of sectors, primarily in France”.
The agreement was announced the day after a preliminary estimate of Markit’s composite purchasing manager’s index for France said private sector companies in the country grew at their fastest pace in two and a half years this month.
The index rose to 51.6 in March from 47.9 last month according to the estimates, with figures over 50 representing growth.
“Mubadala looks to establish relationships with experienced international partners in order to invest in key markets that we believe hold long term potential,” said Mubadala’s deputy group chief executive Waleed Al Mokarrab Al Muhairi.
“Our collaboration with Caisse des Dépôts International Capital provides us with a platform to co-invest with a highly reputed partner.”
The platform, to be managed by senior professionals from both entities, will primarily target equity stakes in private companies, but will also invest in other classes such as property and infrastructure.
“Long-term partnerships like this are an increasingly important source of capital to drive economic growth,” said Caisse des Dépôts’ group chief executive Jean-Pierre Jouyet.
“Our respective investment teams are already reviewing a strong pipeline of potential investments in France that will capitalise on the track record and sector expertise of both parties to support the development of the companies in which we invest, and generate attractive returns.”
The platform is similar in nature to the IQ Made in Italy investment partnership between Qatar Holding and Italy’s state backed private equity fund Fondo Strategico Italiano, announced in November 2012.
jeverington@thenational.ae
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