Complex Made Simple

Abu Dhabi’s Mubadala investing billions locally and internationally

Mubadala, which manages $232 billion in assets, has been making noise mostly from investing but also divesting from local and international markets

Miami-based Reef Technology raised $700 million in a growth equity round led by Mubadala Capital Mubadala announced in November it will become an investor in Group42 (G42) Mubadala Healthcare is part-funding the trial of an immune-dampening drug in the UK

Abu Dhabi’s Mubadala Capital was established in 2011 as the financial investment arm of Mubadala Investment Company (Mubadala), one of the world’s leading sovereign wealth funds.

Mubadala, which manages $232 billion in assets, has been making noise mostly from investing but also divesting from local and international markets, during September, October, and into November, with deals totaling billions and focusing on tech, oil&gas, and healthcare.

Reef Technology

Miami-based Reef Technology raised $700 million in a growth equity round led by Mubadala Capital and SoftBank Vision Fund this November.

The company provides hardware, software, and management services for parking lots and transforms them into neighborhood goods and service delivery hubs for local businesses.

These include food delivery, package delivery, grocery delivery, and healthcare.

Reef Technology has a network of more than 4,500 parking locations to create a proximity-as-a-service (PaaS) platform for large and small businesses.

In 2018, Reef Technology launched Reef Kitchens to open delivery-only ghost kitchens for local food entrepreneurs. 

Read: UAE and Saudi budgets revealed: Which nation is richest in the Middle East?

Silver Lake

In September, Mubadala bought a stake of about 5% in private equity firm Silver Lake and said it would invest $2 billion in a technology fund run by the firm. Mubadala said it would buy the stake in Silver Lake from Dyal, a unit of Neuberger Berman. The deal is the latest move in the Abu Dhabi sovereign wealth fund’s drive to expand its technology portfolio.

Evotec SE

Mubadala Investment Co. announced last October it will invest $235 mn in German pharmaceutical company Evotec SE.

It will subscribe to 9.2 million Evotec shares, and take about a 5.6% stake in a private placement, according to a statement. The shares were sold at 21.78 euros ($25.9), a 3.4% discount to Evotec’s Oct. 12 close of 22.55 euros ($26.82).

Global Healthcare Opportunities

Mubadala Investment Company participated this November in the completion of an investment deal in favor of Global Healthcare Opportunities (GHO), the European specialist investor in healthcare, with the aim of strengthening its investments in the Envision Pharma Group, a leading technology-enabled scientific communications company.

Founded in 2001, Envision helps biopharmaceutical and medical device companies commercialize new compounds through medical strategy, strategic publications planning, and medical communications delivery.
 Over the last 19 years, Envision has enjoyed outstanding year-on-year organic growth and made key strategic acquisitions. 

Group 42

Mubadala announced in November it will become an investor in Group42 (G42), the Abu Dhabi-based AI and cloud computing company, via the integration of Injazat and Khazna Data Centres (Khazna).

Injazat and Khazna, both homegrown industry leaders nurtured over the past decade as part of Mubadala’s information, communications & technology portfolio, will become part of G42’s deepening technology capabilities and accelerate G42’s cloud business and its ability to deliver holistic and scalable technology solutions while growing national talent and investing in local capacity.

Khazna provides organizations with dedicated commercial wholesale data center solutions to meet the growing need for data center operations in the UAE.  

With G42, both Injazat and Khazna will have access to a global network of partners and complementary capabilities to accelerate their growth and scale. 

Read:  The UAE to become UK’s prized trading partner after Brexit

OMV

Mubadala and OMV, the international integrated oil and gas company headquartered in Vienna, completed in October the transaction for OMV to acquire an additional 39% stake in Borealis, a leading, global chemical company, from Mubadala.

OMV now holds a 75% interest in Borealis and Mubadala retains a 25% interest in the company.

In 2019, Borealis generated worldwide total sales of 11.65 bn and a net profit of $1.037 bn.

Excalibur Medicines Limited

Mubadala Healthcare is part-funding the trial of an immune-dampening drug in the UK that will help patients with diabetes overcome the effects of the virus.

The trial, known as ARCADIA, follows preclinical research that suggests a glucose kinase activator (AZD1656) could help diabetes patients with COVID-19 by dampening the overactive response of the immune system that is typically acute in those patients with raised blood glucose levels.

If successful, the compound could ultimately be prescribed by a primary care physician for people with diabetes presenting with early COVID-19 symptoms.

There are more than one million people living with diabetes in the United Arab Emirates. 

The compound was initially developed by Anglo-Swedish pharmaceuticals group, AstraZeneca, but research by UK-based biomedical research charity St George Street Capital Limited, SGS, discovered its immune-dampening effects. The trial will be conducted by Excalibur Medicines Limited.  

Reliance Retail Ventures

Reliance secured a $1.3-billion investment in its retail business from Saudi Arabia’s wealth fund this November, sending its shares 1.8% higher in early trading last Friday.

Reliance’s retail business has secured more than $3 billion in funding from various investors, including Silver Lake Partners and Abu Dhabi’s state fund Mubadala.

Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited.

Reliance Industries on Friday announced a 15% drop in its September-quarter profit as COVID-19 impacted its oil business.