(MENAFN- The Peninsula) ABU DHABI: European fund manager Ardianwill invest $2.5 billion in private equity funds run by MubadalaCapital, an arm of Abu Dhabi's state fund Mubadala, thecompanies said on Thursday, the first time Mubadala has acceptedcapital from a third-party investor.
The deal will see Ardian invest $1.75 billion to take amajority stake in S$2.5 billion portfolio owned by MubadalaCapital. The portfolio includes mainly North American buyout andgrowth funds as well as direct investments.
Mubadala has also established a new $1.5 billion privateequity fund with equal primary capital commitments from MubadalaCapital and Ardian.
"This deal represents one of Ardian's largest transactionswith a sovereign wealth fund," Ardian's head of funds andprivate debt, Vincent Gombault, said in a joint statement byArdian and Mubadala Capital.
Ardian manages and advises $60 billion of assets, with a teamof more than 450 employees based in 12 offices across the world.
Mubadala Capital manages more than $10 billion of assetsacross its portfolio.
Sovereign investors like Singapore's Temasek have alsoexecuted similar deals, bringing in outside institutionalinvestors in joint deals. In 2014, it launched Astrea II, aco-investment vehicle in which Ardian was an investor.
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