Abu Dhabi’s Mubadala Investment Company revealed in its latest financial results that its portfolio of assets under management saw a 9.45 percent annual increase to over AED1.1 trillion ($300 billion) in 2023.
In line with its future-forward strategy, Mubadala deployed AED89 billion into a range of sectors shaping the future, including artificial intelligence, technology, digital infrastructure, life sciences and clean energy, while also growing its private credit business. The company capitalized on multiple market opportunities, generating total proceeds of AED99 billion in 2023.
In the UAE, the company heavily invested in AI in healthcare and space to drive the country’s transformation. Moreover, it bolstered its position as a global investor by expanding further into markets in North America, Asia and Europe.
“Our foundational investments in industries shaping the future are positioning Mubadala as a global investor in solutions to support human progress,” stated Khaldoon Khalifa Al Mubarak, managing director and group CEO of Mubadala.
Expansion in UAE
In the UAE, Mubadala launched two new businesses in collaboration with Abu Dhabi’s technology group G42. First, the company launched Space42, a space and satellite technology leader, by merging its satellite company Yahsat and geospatial solutions company Bayanat.
Moreover, Mubadala and G42 launched M42, a first-of-its-kind, tech-enabled, integrated healthcare company. In addition, the companies founded Abu Dhabi’s MGX, a comprehensive investment vehicle that aims to accelerate the development and adoption of AI and other technologies.
Global investments
In the Americas, Mubadala invested in Aligned, one of the fastest-growing data center providers. Through Mubadala Capital, the company announced its intent to acquire Fortress, a world-leading investment manager, from the Softbank Group. In addition, Masdar, Mubadala’s global clean energy powerhouse, closed on a 50 percent stake in Big Beau, a solar and battery storage solution in California, from EDF Renewables North America.
Meanwhile, in Northern Europe, the company acquired a stake in GlobalConnect, a leading fiber-based data communication and data center services provider.
In Asia, the company’s GlobalFoundries launched a $4 billion semiconductor fabrication plant in Singapore. Mubadala also invested alongside KKR in CoolIT Systems, a leading provider of liquid cooling solutions, and in Osstem, a dental care group, in South Korea. Furthermore, Mubadala Energy made one of the largest natural gas discoveries in Indonesia in December.
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Growing private credit business
Last year, Mubadala expanded its private credit business by forming a $1 billion joint venture with Ares to capitalize on the substantial demand for customized liquidity solutions for the credit secondary asset class.
In addition, it forged a strategic partnership with Ares and Aldar to invest $1 billion in Europe’s private real estate credit. Furthermore, the company partnered with Apollo to invest up to AED9 billion over the next five years in credit opportunities.
“Complementary to our growth in AUM, 2023 marked a year of prudent debt raising where we successfully executed almost AED30 billion of funding commitments,” stated group CFO Carlos Obeid.
As part of the company’s debt issuances, Mubadala executed its first green bond in October after establishing its green financing framework. “We continue to maintain a relatively interest rate immune debt portfolio with a conservative gearing ratio of 10.3 percent and a strong liquidity position to navigate through this cycle,” added Obeid.
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