UAE Sovereign Wealth Fund Mubadala Capital CEO Visits Korea... Fundraising at Major Korean Institutions
by Park Soyeon
Published 21 Mar.2024 06:15(KST)
Updated 22 Mar.2024 12:03(KST)
Representative of Mubadala's Subsidiary Investment Company Visits Korea for Meetings with Pension Funds, Mutual Aid Associations, and Financial Holdings
Conducts Private Equity (PE) Fundraising Roadshow Targeting Major Korean Institutions
Hani Bahoushi, CEO of Mubadala Capital, visited South Korea to raise fund capital targeting major domestic pension funds, mutual aid associations, and financial institutions.
According to the investment banking (IB) industry on the 21st, Mubadala Capital, a subsidiary of the United Arab Emirates (UAE) sovereign wealth fund Mubadala, is currently conducting a roadshow to raise private equity (PE) funds from major Korean institutions.
Mubadala Capital is an investment company under Mubadala, a sovereign wealth fund based in Abu Dhabi. The company is an investment management subsidiary led by former global IB professionals and currently manages $22 billion (approximately 29.4 trillion KRW).
Since launching a solution platform in 2022 composed of a portfolio of various global assets, it has been raising funds from global institutional investors. Since its establishment in 2011, Mubadala Capital has recorded a cumulative annual return of 18% through PE and venture capital (VC), leveraging strong capital from oil-producing countries and its own management capabilities.
Unlike other sovereign wealth funds worldwide, Mubadala Capital strategically collaborates with external institutions to receive investments and co-invests alongside its parent company, Mubadala. Mubadala, the parent company, is one of Abu Dhabi’s major sovereign wealth funds with total assets under management (AUM) of $284 billion.
Last year, Mubadala Capital held meetings with the Seoul Metropolitan Government and the Seoul Investment Agency and met with leading startups representing Seoul. Earlier this year, it signed a memorandum of understanding (MOU) for strategic collaboration with Woori Financial Group in the UAE, establishing a long-term partnership.
Mubadala Capital previously raised a fund of up to $6 billion (approximately 8 trillion KRW) through 'Mubadala Capital Alternative Solutions,' which gathered global investors including those from Korea. In this process, it introduced a groundbreaking strategy by applying a low management fee of 0.5% annually for early investors, instead of the usual global fund fees of 2% management fees and over 20% performance fees.
After President Yoon Suk-yeol’s visit to the UAE last year, the UAE promised $30 billion in investments in Korean companies, strengthening investment cooperation between the two countries. The UAE, financially abundant from oil exports, actively manages money through sovereign wealth funds by investing overseas. It is conducting active overseas investments to diversify its oil-centered industry. It shows great interest in mergers and acquisitions (M&A) or equity investments in startups and advanced technology companies abroad.
Mubadala currently maintains the closest exchanges with the South Korean government. The Financial Investment Support Group, which is responsible for UAE economic cooperation within the Ministry of Economy and Finance, and KDB Industrial Bank mainly cooperate with Mubadala. Last year, a 'Korea Investment Dedicated Team' was established within Mubadala. Mubadala ranks second in Abu Dhabi and 12th globally. It participated in Nexen Tire’s third-party allotment rights offering in 2017 and acquired Hugel last July in a consortium with GS Group. It also signed an agreement with Hyundai Motor Company at the end of last year to jointly explore new businesses such as future cars and hydrogen.
An IB industry official said, "CEO Bahoushi is personally visiting Korea to hold meetings with major pension funds, mutual aid associations, and financial holding companies," adding, "Although the purpose of the visit is a roadshow to raise PE funds, various future collaborations leveraging the UAE’s massive 'oil money' are being discussed."
Kim Chang-gyu, CEO of Woori Venture Partners (right), is taking a commemorative photo after signing a memorandum of understanding with Hana Bahoushi, CEO of Mubadala Capital, at a hotel in Abu Dhabi, United Arab Emirates (UAE) on February 22, 2024.
Photo by Woori Venture Partners, Photo by Yonhap News
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