Mubadala Capital, Ardian in $2.5b deal

abu dhabi — Mubadala Capital, the financial investment arm of Mubadala Development Company, announced a transaction with Ardian, the independent private investment company. Ardian has committed $2.5 billion to the transaction through a secondary/primary structure.

The secondary component involves Ardian acquiring an interest in an existing Mubadala Capital managed private equity portfolio. The primary component involves Mubadala Capital’s establishment of a new private equity fund, in which Ardian will be a lead investor. This transaction marks the first time Mubadala Capital has accepted capital from third party investors, a significant milestone in the continued growth and development of its business.

The secondary portfolio is comprised of an existing $2.5 billion private equity pool of Mubadala Capital owned and managed assets that includes 14 LP interests in predominantly North American buyout and growth funds, and 14 direct investments, including a number of co-investments alongside renowned GPs. Ardian has acquired a majority stake in the portfolio with Mubadala Capital retaining the remaining interest.

Mubadala Capital has also established a new $1.5 billion private equity fund with equal primary capital commitments from Mubadala Capital, and Ardian.

Mubadala Capital will invest the new fund using the same value-oriented investment strategy that was used to create the secondary portfolio.

This strategy involves an integrated approach to making direct investments, co-investments and fund commitments, primarily in North America and Europe. — Wam