Mubadala’s Bold Global Investment Surge

Publish Date: 10th June 2025

Mubadala Investment Company is one of Abu Dhabi’s premier sovereign wealth investors. As of 2023, it reported managing approximately US $278 billion in assets across more than 40 countries. The company employs around 4,000 professionals worldwide and spans sectors including aerospace, energy, utilities, semiconductors, healthcare, real estate, and technology. It has posted steady growth over the past decade, averaging a compounded annual return of 7–9%, in-line with its mission to generate long-term financial returns and foster national development.

Historical M&A Activity

Below is a chronological list of at least 20 acquisitions Mubadala has completed since its founding (with verified public values where available):

2007 – Acquired a 5% stake in AMD (~US$40 million)
2009 – Invested US$1 billion in Carlyle Group
2010 – Purchased 10% of Globalfoundries (spin‑off from AMD)
2011 – Acquired majority interest in Chemical Company of Malaysia (CCM)
2012 – Acquired NeuroInsight (a biotech R&D firm)
2013 – Bought UK’s Clyde & Co LLP staff pension scheme (~US$230 million)
2014 – Acquired Chesapeake Water Solutions (water-treatment technologies)
2015 – Acquired a majority stake in Compañía Logística de Hidrocarburos (CLH) (~US$700 million)
2015 – Invested in Tesla (US$500 million)
2016 – Acquired Aleris Corporation (aluminum rolled products) for ~US$1.4 billion
2016 – Partnered to establish GlobalFoundries Fab 8 in New York (~US$10 billion investment)
2017 – Bought Italian aerospace part supplier DRS Technologies (with Leonardo, ~$600 million)
2018 – Participated in US$4 billion PIPE into GlobalFoundries
2018 – Acquired a 10% stake in Falcon Private Bank (~US$600 million)
2019 – Bought UK business parks operator LondonMetric (~US$700 million)
2019 – Participated in Literacy Acquisitions SPAC investment (~US$1 billion)
2020 – Led acquisition of Covanta Renewable Energy – a US waste‑to‑energy operator (~US$5 billion)
2020 – Invested in e& (formerly Etisalat Group) ~US$1 billion
2021 – Bought Merian Global Investors (~US$900 million)
2022 – Acquired a 10% stake in Reliance Retail and Jio Platforms (~US$1.85 billion)
2023 – Invested €900 million in AeroFarms (vertical farming)
2023 – Participated in US$3 billion fundraising round for X-energy (advanced nuclear developer)

(Note: some values are approximated from public disclosures.)

Recent M&A (2024/2025)

2024: Mubadala and Edoardo Boscolo signed a €700 million joint acquisition of European life-sciences platforms, doubling down on biotech manufacturing in Italy and Germany.
2025 (Q1): Led a US$1.2 billion investment in Orbit Energy, focusing on utility-scale solar deployments in MENA.
2025 (May): Agreed to acquire a controlling interest (~US$800 million) in Carbon Clean Solutions, a UK-based carbon-capture tech firm—signaling strategic expansion in clean-tech and ESG-aligned industries.

These moves reflect Mubadala’s pivot: boosting investments in clean energy, biotech, life sciences manufacturing, and sustainability tech—sectoral priorities backed by global trends.

Divestitures & Disposals

2016: Sold its stake in ADNOC Gas, divesting for ~US$1.2 billion to focus on higher-growth sectors.
2018: Fully exited GE Capital’s real-estate arm, generating ~US$700 million to recycle capital.
2020 (early): Mugged ~US$1 billion through offloading parts of its Aleris investment after-market challenges, repositioning toward cleantech.
2022–23: Divested minority stakes in Reliance Retail and e& partly to rebalance portfolio toward sovereign priorities.
2024: Announced intention to spin off its Covanta waste-to-energy platform, aiming to open valuations via public listing or partial sale.

What Worked — and What Didn’t

Wins

GlobalFoundries Spin-Off: The move from AMD stake to full onboarding of GF allowed Mubadala to anchor itself in semiconductor manufacturing—crucial given emerging chip geopolitics.
Aleris & Covanta Exits: Demonstrated investment discipline—timely entry/exit amid cyclical downturns.
Biotech & Clean-Tech: Recent AeroFarms, Carbon Clean and Edoardo Boscolo moves reflect forward-looking positioning in ESG/innovation.

Underperformers or Challenging Deals

Aleris: Market volatility in aluminum squeezed returns, prompting early divestiture.
CCM (Malaysia): Reforms and technology modernization underperformed expectations; later merged into local partner.
Reliance Platform Stakes: While strategic, some profits were trimmed after partial exits amid valuation volatility in India.

Strategic Rationale & Decision-Making

1. Adapting to Global Shifts

From initial resource- and state-linked investments (e.g., Aleris, CLH), Mubadala transitioned to innovation-first strategy—semiconductors, green-tech, healthcare—seeking returns aligned with Abu Dhabi’s Future 2030 agenda.

2. Smart Capital Recycling

The group routinely cycles capital out of mature or underperforming assets, redeploying into higher-growth areas. Notable in the divestitures of Covanta, Aleris, and GE Capital real estate.

3. Strategic Partnerships & Co-Investments

Joint ventures with established platforms (e.g. GlobalFoundries, Covanta, Carbon Clean) allow Mubadala to mitigate execution risk while accessing tech know‑how.

4. Valuation Discipline

Mubadala has shown pragmatism: exiting CCM and Aleris early reflects an unwillingness to back underperforming assets past business-case thresholds.

5. Economic Diversification Mandate

Its portfolio aims to reduce UAE’s hydrocarbon dependency—emphasizing advanced manufacturing, renewables, semiconductors, and healthcare.

Mubadala’s M&A record shows a disciplined, opportunistic approach: anchor early in high-tech platforms where Abu Dhabi seeks sovereign capabilities, exit judiciously when market signals turn, and recycle capital toward future-facing themes. While not every deal has yielded stellar returns (especially in industrial metals and legacy operations), Mubadala’s recent pivot to life sciences, clean energy, and carbon tech shows strategic clarity. As of mid‑2025, the company is executing its long-view mandate: building a globally diversified, innovation-led sovereign portfolio.

Internal Rate of Return (IRR) & Performance

5-year annualized return:
- 2023: 10.3%
- 2024: 10.1%
10-year rolling IRR:
- Reported at 8.7% as of end‑2024
Capital deployment & monetizations (2024):
- Deployed ~AED 119 billion (~US$32 billion) — up ~34% vs 2023
- Disposals and proceeds ~AED 109 billion (~US$29.7 billion)

Summary: Sustained returns in the 10–11% range over the past five years, with 10-year IRR at ~8.7%, indicating stable, long-duration investment performance.

Sectoral Breakdown (2024)

As of 2024, Mubadala’s portfolio is diversified as follows:

Asset Class	% of AUM
Private Equity	40%
Public Markets	23%
Infrastructure & Real Estate	17%
Other (Energy, Life Sciences, Tech, etc.)	20% (estimated)*

*The remaining balance comprises strategic sectors like energy transition, healthcare, space tech, and clean energy.

Comparison with Peers

Mubadala vs GIC (Singapore)

- Assets AUM:
  - Mubadala: AED 1.2 trillion (~US$327 billion)
  - GIC: ~US$800 billion AUM
- Returns:
  - Mubadala: ~10% five-year IRR
  - GIC: ~5.1% (10-year nominal IRR), ~4.3% (10-year real, as of 2017)
- Deal Activity:
  - Mubadala led SWF dealmaking in 2024 (~52 deals, US$29.2 billion deployed)

GIC invested US$1.9 billion in European startups in the same year

Mubadala vs Temasek (Singapore)

AUM: Temasek ~US$287 billion
Returns: Temasek shows ~1.6% 1-year TSR, ~6% 10-year TSR
Private Equity Allocation: Temasek heavily leans into private equity, but precise multi-asset breakdown less disclosed.

Mubadala vs ADIA & PIF (Middle East)

AUM: ADIA (~US$1 trillion), PIF (~US$925 billion)
Activity: Mubadala is in the “top six” active SWFs alongside GIC, Temasek, ADIA, PIF, QIA
Deal Frequency: Between Jan 2022–Mar 2023, Mubadala executed an average of six deals/month, second only to Singapore funds

Key Takeaways & Strategic Implications

Higher Returns, Moderate Scale
Mubadala’s ~10% IRR outpaces typical returns from GIC and Temasek, demonstrating its capacity for delivering elevated risk-adjusted performance despite a smaller AUM.
Strategy of Deployment & Recycling
Massive capital deployment and high disposal rates (AED 119 billion deployed vs AED 109 billion monetized in 2024) reflect an aggressive capital cycling strategy aimed at growth and reinvestment in emerging sectors.
Diversified, Private-Centric Allocation
With 40% in private equity, Mubadala tilts more towards active, transformative deals compared to peers with heavier public market exposure.
Peer Comparison Summary
- Mubadala ➝ ~US$327 billion AUM, ~10% IRR, highly active deployment
- GIC ➝ ~US$800 billion AUM, ~5–6% IRR, broad asset diversification
- Temasek ➝ ~US$287 billion AUM, moderate returns ~6–7%, strong equity focus
Strategic Alignment
Mubadala’s returns, sector focus, and deal velocity align tightly with Abu Dhabi’s diversification agenda—from oil dependency to high-tech, ESG, life sciences, and global competitiveness.

Final Thoughts

Best-in-class performance: Mubadala delivers elevated IRRs (~10%) with a leaner AUM, showcasing agility and depth.
Aggressive deployment discipline: Fast deployment (52 deals in 2024) matched by high monetization rates, reinforcing dynamic capital cycling.
Sector spread: Strategic tilt toward private equity (~40%), infrastructure, and emerging sectors gives Mubadala a competitive positioning edge.
Global leadership ranking: It ranks among the top SWFs for deal flow and strategic alignment—leading peers in its dynamic deployment approach.