Ardian strikes $2.5bn secondary/primary transaction with Mubadala

The secondary component of the deal involves Ardian acquiring an interest in an existing Mubadala-backed private equity portfolio. The primary portion involves Mubadala establishing a new private equity fund, in which Ardian will be the lead investor.

The secondary portfolio comprises an existing $2.5bn in private equity assets owned and managed by Mubadala Capital. It also includes 14 LP interests in predominantly North American buyout and growth funds, as well as 14 direct investments, including a number of co-investments. Ardian has acquired a majority stake in the portfolio, with Mubadala retaining the remaining interest.

The newly established private equity fund is a $1.5bn vehicle with equal primary capital commitments from Mubadala and Ardian. The fund will use the investment strategy developed with Mubadala's secondary portfolio for its deployment, the GP said, making direct investments, co-investments and fund commitments primarily in North America and Europe. Targeted sectors will include sports, media, entertainment, consumer food and energy infrastructure, among others.

Based in Abu Dhabi and established in 2011, Mubadala Capital is Mubadala Development Company's dedicated financial investment arm focused on the management of alternative assets, including equity and credit, public and private securities, direct and third-party managed funds, and a number of sovereign investment partnerships. As of September 2016, the firm had $10bn in assets under management.

It is the first time Mubadala will manage funds on behalf of a third-party investor, the firm said in a statement. Mubadala added that it may take on third-party capital in other areas of its business in the future.

Ardian, for its part, said the deal represented one of its largest transactions with a sovereign wealth fund. Last year, the GP closed its latest secondaries vehicle, Ardian Secondaries Fund VII (ASF VII), with $14bn of commitments, $10.8bn of which was dedicated to secondaries and $3.2bn to primary investments.

Vincent Gombault, head of funds-of-funds and private debt at Ardian, and Waleed Al Mokarrab Al Muhairi, deputy group CEO and CEO of the emerging sectors platform within Mudabala Development Company, oversaw the transaction, which was closed on 31 March 2017.

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• Topics
• Secondaries
• France
• Fund-of-funds
• France
• Ardian (formerly Axa PE)