Mubadala forms co-investment platform with Greek venture capital fund-of-funds manager

Mubadala Investment Co., Abu Dhabi, and Greek venture capital fund-of-funds business New Economy Development Fund will create a €400 million ($491 million) co-investment platform to invest in opportunities in Greece.

The fund of funds, known as Taneo, was established by the Greek government in 2001 and invests in venture capital funds specializing in startup, and early- and expansion-stage investments.

A news release provided by a spokesman for Mubadala, which has 465.5 billion UAE dirham ($126.7 billion) in assets, said a memorandum of understanding was signed Wednesday by Antonis Georgakakis, chairman and CEO of Taneo, and Waleed Al Mokarrab Al Muhairi, deputy group CEO and CEO of alternative investments and infrastructure at Mubadala.

Each firm will contribute €200 million to the new platform, which will target businesses with growth potential across key sectors of the Greek economy. Further details including targeted sectors could not be learned by press time.

The two firms will also share knowledge, further enhancing diplomatic and trade relations between the two countries, the release said.

"The creation of a new co-investment platform represents an exciting partnership for both parties. Greece and the United Arab Emirates have had strong diplomatic ties for many decades and, in recent years, we have seen an increase in trade and bilateral investment between our countries," said Yannis Dragasakis, Greece's deputy prime minister and minister of economy and development. "The signing of this MOU represents the first step toward wider cooperation between Mubadala and Taneo, and the creation of an investment platform that can facilitate the growth of resilient businesses in key areas of the Greek economy."

Added Khaldoon Khalifa Al Mubarak, group CEO and managing director of Mubadala: "The Greek economy has demonstrated its resilience in recent years and many sectors are now demonstrating robust growth. As a global long-term strategic investor and partner, Mubadala's focus is on finding opportunities across different markets which offer compelling investment prospects and the opportunity to generate strong and consistent returns."

Last week, the Abu Dhabi government said $123 billion sovereign wealth fund Abu Dhabi Investment Council would be restructured and merged into Mubadala Investment Co.

Spokesmen for Taneo could not be reached for comment by press time.