Blackrock has forged a long-term partnership with UAE-based Mubadala Capital by making a significant investment into its private equity (PE) business.
The $1.2bn investment was led by BlackRock’s Secondaries and Liquidity Solutions group and a consortium of global institutional investors.
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The deal also included the acquisition of certain assets from Mubadala’s debut private-equity fund.
The BlackRock-led consortium also earmarked $400m to invest in Private Equity Fund III, which recently surpassed its fundraising targets with a final closing of $1.6bn.
The partnership also follows the close of BlackRock’s $3bn SLS strategy, which looks to lead and invest in mid-sized secondary transactions.
BlackRock expects Mubadala Capital and the underlying portfolio to be a key and core investment in its SLS strategy.
Mubadala Capital head of private equity Adib Mattar said: “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.
“We are looking forward to a long-term partnership with BlackRock and all participating investors.”
BlackRock Secondaries and Liquidity Solutions team managing director Veena Isaac said: “Completing this investment was highly collaborative between BlackRock, our partners and Mubadala Capital.
“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.”
Mubadala Capital oversees $9bn of assets in third-party managed funds across its private equity, public equities, venture capital and Brazil businesses.
It is claimed to be the first sovereign wealth fund to manage third-party capital representing other institutional investors.
Earlier this week, UAE-based investment advisory platform Sarwa raked in $15m in a Series B financing round to expand its reach to more people.
