Mubadala Capital, the asset management subsidiary of Abu Dhabi’s sovereign fund Mubadala Investment Company, received a “significant” investment into its private equity business from a consortium led by the world's largest asset manager BlackRock.
BlackRock’s Secondaries and Liquidity Solutions (SLS) and a group of global institutional investors have invested in assets currently managed by Mubadala Capital, the company said on Wednesday.
The group of companies also committed $400 million to Mubadala Capital’s private equity Fund III, which has exceeded its fundraising target and closed at $1.6 billion.
“BlackRock’s institutional approach to underwriting and partnership-orientation has helped create what we expect to be a landmark transaction, especially in a highly uncertain market environment,” Adib Martin Mattar, head of private equity at Mubadala Capital, said.
The partnership between Mubadala Capital and BlackRock is in parallel to the $3bn final close for BlackRock’s $3bn SLS strategy in March.
BlackRock aims to invest in mid-sized secondary transactions and its team has developed “conviction around Mubadala Capital and the underlying portfolio", which it said "will be a key and core investment in its SLS strategy”, according to the statement.
“Completing this investment was highly collaborative between BlackRock, our partners and Mubadala Capital,” Veena Isaac, managing director of the BlackRock SLS, said.
“We look forward to being a limited partner and continuing to explore further ways to collaborate with Mubadala Capital in what is clearly a highly differentiated investment platform that has demonstrated an ability to leverage its sovereign access and network for the benefit of its investors.”
As well as managing its own investments, Mubadala Capital manages 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.
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
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