Mubadala Investment Company, an Abu Dhabi sovereign investor with an asset portfolio of AED1 trillion ($270 billion), recorded in 2021 its strongest year in its 20-year history, with double-digit returns across all asset classes.
The company made a record total comprehensive income (TCI) attributable to the owner of AED122 billion ($33.22 billion), compared to AED72 billion in 2020. At year end, assets under management across the group stood at AED1.045 trillion compared to AED894 billion in 2020.
Mubadala invested AED125 billion during 2021 in key sectors in the UAE and internationally. In the UK, Mubadala invested AED2.5 billion in CityFibre, the UK’s largest independent fibre infrastructure platform, and expanded an existing partnership with Bpifrance with €4 billion to invest in developing French enterprises with proven growth potential, and high growth technology sectors in France.
The company’s 2021 milestones included GlobalFoundries IPO on the Nasdaq, Yahsat’s IPO on the ADX, and developing Masdar into a new clean energy champion for Abu Dhabi under a new structure.
Growth was supported through investment returns, monetising certain assets and new partnerships. Mubadala listed its wholly owned semiconductor manufacturing company, GlobalFoundries, on the Nasdaq, valuing the company at nearly $26 billion in one of the biggest flotations of 2021 in the United States.
Yahsat’s IPO on the Abu Dhabi Securities Exchange supported the growth of Abu Dhabi as a capital marketplace and raised $731 million. Adnoc and Taqa became shareholders in Masdar, which was founded by Mubadala in 2006, to boost its renewable energy capacity to over 50 gigawatts by 2030.
Impacting global business
Managing Director and Group Chief Executive Officer Khaldoon Khalifa Al Mubarak said: “Mubadala continues to invest in sectors that are changing the world and impacting global business. As markets rose and the economy began to recover from the pandemic, we looked for opportunities to take some of our strongest companies public and invest with world-class partners in high-growth sectors and geographies.”
“2021 was Mubadala’s strongest financial year in its 20-year history. We are managing for value as well as staying focused on our long-term mandate to find commercial opportunities despite the current challenging and complex global economic outlook, with headwinds such as inflation, supply chain disruptions and tighter monetary policy.”
Mubadala Health, which has brought some of the world’s best-known health care providers such as Imperial College of London and Cleveland Clinic to Abu Dhabi, launched as an integrated healthcare network to serve patients in the region seeking specialised care.
Mubadala Capital, which began operations in 2011, became a wholly owned subsidiary with $13.7 billion assets under management including managing third-party capital.
Consistent profit growth
Group Chief Financial Officer, Carlos Obeid, added: “Our consistent profit growth in 2021 reflects the relevance of Mubadala’s investment strategy to focus for the long-term on sectors, asset classes and geographies that are positively contributing to global progress. As the global economy began to recover, we maximised opportunities to monetise our mature assets and invest further into growing sectors with tailwinds. Mubadala ended the year more diversified and resilient, and better prepared for the more uncertain macroeconomic environment ahead.”
Some 34% of Mubadala’s portfolio comprises direct and indirect investments in private equity, with 31% in public markets and 14% in real estate and infrastructure, among others
In 2021, Mubadala invested AED125 billion of capital, including AED1.3 billion in Culligan, a leader in sustainable water solutions; and AED2.9 billion in Marshal Wace TOPS World Equity Fund, one of the largest alternative asset managers.
As previously announced, Mubadala no longer releases annual data not relevant to a long-term investor, such as annual revenue or net income, and instead uses a multi-year metric. Its current five-year rolling rate of return is 12.2%.-- TradeArabia News Service