Mubadala Capital and private investment manager Ardian formed a $2.1 billion private equity partnership, the firms said in a joint news release.
Mubadala Capital is the wholly owned money management subsidiary of the $284 billion sovereign wealth fund Mubadala Investment Co., Abu Dhabi. The manager, which runs about $17 billion across its own balance sheet investments and third-party strategies on behalf of institutional investors, has four private equity funds, three early stage venture strategies and two funds in Brazil focused on special situations. The establishment of Mubadala Capital — following a partnership with Ardian in 2017 — marked the first time a sovereign wealth fund had managed capital on behalf of other institutional investors.
The $2.1 billion partnership will have Ardian invest in a portfolio of Mubadala Capital-managed private equity assets. Ardian will also make a primary commitment to Mubadala Capital's private equity funds, the news release said.
As part of the deal, the two firms brought together a portfolio of 10 limited partner interests with a group of general partners, predominantly in North America and Europe, along with six direct investments. All of the assets were previously held on Mubadala Capital's balance sheet having been spun off from Mubadala Investment Co. last year.
"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 CEO of Mubadala Capital, in the release.
Ardian has $140 billion in assets under management and advisement.
Further details were not immediately available.