Abu Dhabi-based sovereign investor, Mubadala Investment Company, now plans to double its Asia exposure to nearly 25% of its total portfolio over the next decade as part of its diversification strategy.
During the Abu Dhabi Finance Week, while shedding further light upon the plan, Mohamed Albadr, Mubadala Investment Company’s Head of Asia, highlighted a “paradigm shift” in the Gulf region, mostly driven by digitalisation.
“Asia currently accounts for nearly 13% of Mubadala Investment Company’s USD 330 billion assets under management (AUM), but in the next five to 10 years, we would love to see that double,” Albadr said.
While North America currently accounts for the lion’s share or 40% of Mubadala Investment Company’s current AUM, Albadr explained that the Asia pivot from the current USD 43 billion in assets could see the figure closing in on USD 86 billion in less than 10 years.
“The growth in Asian assets will be plotted through a multi-strategy approach, whether it’s through private equity, infrastructure or real estate, or through our endowment model, the Abu Dhabi Investment Council,” the official mentioned. Private equity investments have been driving a lot of that deployment, mainly through large quantities, including in the late-stage and buyout space, according to Albadr.
“Mubadala Investment Company’s core Asian markets include China, Japan, South Korea and India, which offer a mature private equity market with exit opportunities via strategies or capital markets,” he said.
“China is the centrepiece of our portfolio when it comes to Asia. Today, we have an office in Beijing, we have 35 staff members, and we also have a joint venture office in Hong Kong, and that’s a market where we can see there’s going to be a lot of structural reform,” the official concluded.
Mubadala Investment Company’s recent investments in China include participation in a consortium that acquired majority control of property developer Dalian Wanda’s mall unit for USD 8.3 billion in 2024. Also last year, the sovereign wealth fund partnered with the CBC Group, Asia’s largest healthcare-dedicated asset management venture, to acquire 100% ownership in the carve-out of UCB Pharma’s mature business in the world’s second-largest economy.