Mubadala Asset Base Increases to $326B with AI, Healthcare Investments

Mubadala’s total assets under management in 2024 came to Dh1.2 trillion ($326 billion), with annualised returns of 10.1% over five years.

Mubadala Investment Company, the strategic investment arm of Abu Dhabi, reported a 9.5% increase in its asset base last year, primarily due to investment in industries with an eye towards the future, such as advanced manufacturing, healthcare, and artificial intelligence.

The company announced on Thursday that Mubadala’s total assets under management in 2024 came to Dh1.2 trillion ($326 billion), with annualized returns of 10.1% over five years.

Khaldoon Al Mubarak, managing director and group chief executive of Mubadala, claims the highlight of 2024 was the creation of technology business MGX by the Artificial Intelligence and Advanced Technology Council, with G42 and Mubadala as founding partners.

He stated they planned their portfolio to scale future-focused industries and manage market cycles, from life sciences, semiconductors, and advanced manufacturing to artificial intelligence and clean energy, to align with national priorities.

The company continued collaborating with a growing top-tier of investors across significant regions and industries.

The total amount of capital deployed across industries increased by 33.7% annually to Dh119 billion. Portfolio mix remained unchanged from the previous year, with 40% invested in private equity, 23% in public markets, and 17% in infrastructure and real estate.

According to Mr. Al Mubarak, they increased their footprint in significant investment destinations, deployed large capital in mature and emerging areas, focusing on new global chains and demographic-driven megatrends.

According to a January report by industry expert Global SWF, the company was the largest sovereign wealth fund investor globally in 2024, ahead of the Saudi Arabia Public Investment Fund (PIF).

Mubadala is at the forefront of the emirate’s dreams to diversify its income and produce revenue from sources other than oil on behalf of the Abu Dhabi government. Its interests span many industries and asset classes across six continents.

Mubadala and the global investment manager Fortress Investment Group agreed last month to invest $1 billion from Mubadala in a range of Fortress’s current asset-based lending, private credit, and real estate initiatives, along with Fortress’s current capital pools.

TWG Global, a holding company run by US billionaires Mark Walter and Thomas Tull, stated it wished to buy a minority stake in Mubadala Capital, the Abu Dhabi investment firm’s asset management division. As part of the partnership, TWG is committing to $2.5 billion.

Mubadala Capital manages the current Dh110.2 billion ( two-thirds of that in place of international investors). In December, the two companies partnered to create a Dh3.6 billion deal with Silver Rock Financial.

Mubadala Capital achieved its initial goal by more than Dh3.6 billion when it closed private equity fund IV last year with total commitments of Dh11.4 billion.

The investment arm company has a Dh73.5 billion private loan portfolio, supported by KKR, Apollo, Ares, Carlyle, and Goldman Sachs.

According to a statement released on Thursday, the company backed the expansion of the UAE’s life sciences sector by making purchases to help ensure national drug security and meet the demand for necessary medications globally.

In Mubadala’s annual review, Mr. Al Mubarak stated that they will continue to grow in sectors where Mubadala has long invested with conviction, from advanced manufacturing and semiconductors to clean energy, health care, and life sciences.

He added that organizations like Masdar, M42, Emirates Global Aluminium, and GlobalFoundries are examples of the company’s long-term value generation strategy.

Chief financial officer (CFO) Carlos Obeid stated that Mubadala is well-positioned for future investments with a cautious gearing ratio of 7.8%.