Abu Dhabi-based sovereign wealth fund Mubadala is investing $200 million in a venture firm run by Marcelo Claure, the former chief operating officer of SoftBank Group Corp.

Bicycle Capital, a new growth equity firm that will focus on startups in Latin America, is led by Claure as Executive Chairman and Managing Partner alongside Mwashuma ("Shu") Nyatta as Managing Partner. Shu Nyatta was a former Managing Partner at SoftBank Group International.

Bicycle's strategy is to partner with the best founders in LatAm, helping them scale their startups into valuable companies.

"Bicycle I is anchored by Mubadala Investment Company, an Abu Dhabi based sovereign investor, and Claure Group, Marcelo Claure's family office. Additional capital commitments for the initial closing come from prominent global tech investors and founders," Bicycle Capital said in a statement.

The firm is targeting $500 million for its inaugural fund, and has amassed $440 million in commitments so far, Bloomberg reported.

Mubadala is investing $200 million, and Claure Group is also investing $200 million, the report said.  

Faris Sohail Al Mazrui, Head of Ventures and Growth at Mubadala, said: "The startup ecosystem in Latin America is rapidly evolving, and we believe that there is significant potential to create value by supporting exceptional companies and founders in scaling their businesses.

Mubadala's $284 billion portfolio spans six continents with interests in multiple sectors and asset classes.

"Mubadala has been investing in Brazil for more than a decade, and we look forward to broadening our exposure across the region through this partnership," Al Mazru i, added.

Bicycle Capital represents a significant bet on Latin America, in particular Brazil and Mexico.

"This fund will be the cornerstone of my commitment to and focus on Latin America," said Marcelo Claure.

The Claure Group portfolio includes investments in companies like T-Mobile and SHEIN, the world's fastest growing on-demand fashion company.

(Writing by Seban Scaria seban.scaria@lseg.com; editing by Brinda Darasha)