| 20 April, 2017

Mubadala secures $2.5bln PE investment from France's Ardian

The deal will see Ardian invest $1.75bln to take a majority stake in S$2.5bln portfolio owned by Mubadala Capital

A view of Mubadala Building in Abu Dhabi.

A view of Mubadala Building in Abu Dhabi.

Mubadala/ Handout via Thomson Reuters Zawya

ABU DHABI, April 20 (Reuters) - European fund manager Ardian will invest $2.5 billion in private equity funds run by Mubadala Capital, an arm of Abu Dhabi's state fund Mubadala, the companies said on Thursday, the first time Mubadala has accepted capital from a third-party investor.

The deal will see Ardian invest $1.75 billion to take a majority stake in S$2.5 billion portfolio owned by Mubadala Capital. The portfolio includes mainly North American buyout and growth funds as well as direct investments.

Mubadala has also established a new $1.5 billion private equity fund with equal primary capital commitments from Mubadala Capital and Ardian.

"This deal represents one of Ardian's largest transactions with a sovereign wealth fund," Ardian's head of funds and private debt, Vincent Gombault, said in a joint statement by Ardian and Mubadala Capital. Ardian manages and advises $60 billion of assets, with a team of more than 450 employees based in 12 offices across the world.

Mubadala Capital manages more than $10 billion of assets across its portfolio.

Sovereign investors like Singapore's Temasek have also executed similar deals, bringing in outside institutional investors in joint deals. In 2014, it launched Astrea II, a co-investment vehicle in which Ardian was an investor.

(Reporting by Stanley Carvalho and Saeed Azhar; Editing by Susan Fenton) ((; +65-64035664 ; Reuters Messaging: