Mubadala Capital closes its second successful Fund in Brazil

Gulf Today, Staff Reporter

Mubadala Capital, the wholly owned asset management subsidiary of Mubadala Investment Company (“Mubadala”), held a final close on its second flagship investment fund in Brazil, Brazil Special Opportunities Fund II (“BSOF II”), with total commitments in excess of $710 million. BSOF II successfully raised capital from a diverse set of global investors, including a leading public pension fund, family offices, corporates, private equity funds and asset managers across North America, Europe, the Middle East and Asia.

Oscar Fahlgren, Mubadala Capital’s Chief Investment Officer and Head of the Brazil strategy, said: “The consummation of our second Brazilian flagship fund marks a decade long track-record of successfully operating and investing in Brazil. Our team has developed extensive experience evaluating and completing complex investments, even in situations where the macro-economic environment is not always favourable. We believe that the success of this fundraise is a testament to both our consistent investment strategy and the strength of our local investment team who continuously seek to drive positive outcomes for our investors. Of course, none of this would be possible without the support of our existing and new limited partners who have entrusted us with their capital.”

BSOF II will continue its strategy of investing primarily in control positions in mature companies that are facing some form of complexity or distress, but where the underlying business fundamentals are compelling. This strategy enables BSOF II to acquire these businesses at attractive entry points, creating a margin of safety at the closing of the transaction that reduces BSOF II’s dependency on Brazil’s economic cycles, including currency depreciation, while retaining upside exposure associated with a growing economy. BSOF II seeks out situations where value can be created immediately upon closing of the transaction as any underlying complexity is typically immediately resolved, creating a pathway to delivering strong risk-adjusted returns to our investors.

Mubadala Capital was the first sovereign wealth fund to manage capital on behalf of third-party institutional investors. The organization manages c. $20 billion in aggregate across its own balance sheet investments and third-party capital vehicles across its Private Equity, Solutions, Venture Capital and Brazil businesses. The growth of Mubadala Capital as a global asset management firm, with headquarters in Abu Dhabi and a focus on international investment activities, is a further testament to Mubadala’s entrepreneurial approach to business building and a continued diversification away from reliance on natural resources.

Mubadala Capital is the wholly owned asset management subsidiary of Mubadala Investment Company, a leading global sovereign investor headquartered in Abu Dhabi, UAE. Mubadala Capital manages c. $20 billion in aggregate across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors, including four flagship private equity funds, three early-stage venture funds, two funds in Brazil focused on special opportunities and a highly diversified evergreen investment strategy focused on private market opportunities. Mubadala Capital has offices in New York, San Francisco, London, Rio de Janeiro, and Abu Dhabi. www.mubadalacapital.ae

Meanwhile, Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has partnered with DHL, the global leading brand in the logistics industry, for the latest addition to their sustainability solution, GoGreen Plus. Through this service, DHL is enabling ADIB to reduce carbon emissions associated with their shipments using Sustainable Aviation Fuel (SAF). This collaboration marks a significant milestone, as ADIB becomes the first bank in the MENA region to sign up for DHL Go Green Plus, which enables the Bank to reduce their Scope 3 emissions, encompassing indirect greenhouse gas emissions originating within a company’s value chain, including downstream transportation and distribution.

The announcement aligns with the UAE’s updated target to achieve a 40% reduction in emission by 2030. As part of this initiative, ADIB collaborated with DHL to calculate the CO2e emissions related to the logistics of their shipments. This partnership contributes to achieving ADIB’s commitment in reducing its DHL related emissions and solidifies their commitment to achieving a 30% reduction in ADIB’s Scope 3 emissions by the end of 2023. This is a significant step towards ADIB’s long term goal of completely in setting the bank’s Scope3 emissions.

Commenting on the partnership, Bushrah Alshehhi, Group Chief Human Resources Officer at ADIB, said: “In line with the UAE’s focus on a sustainable transition, we are pleased to partner with DHL and become the first bank in the MENA region using “Go Green Plus” service for sustainable shipping. This initiative underscores ADIB’s commitment to supporting our customers in addressing key environmental challenges and contributing to UAE’s net zero vision. As the UAE prepares to host COP28, a key global summit on climate action, ADIB is proud to contribute to adopt sustainable solutions in the Islamic banking industry. We believe that our partnership with DHL and the implementation of the Go Green Plus service exemplifies our role as a driver of change in integrating sustainable practices into the core of Islamic banking.”

Mahmoud Haj Hussein, Country GM for DHL Express UAE, quoted: “Connecting people and improving lives is our purpose at DHL and when we fulfil our purpose, we make the world a better place. Within our ESG framework, we all have a big responsibility to reduce our carbon footprint for the long-term sustainability of our planet. We have gone one step further on our commitment by enabling our customers to inset carbon emissions within their value chains through our investment in SAF.