Mubadala Weighs Options for $2 Billion Buyout Portfolio

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  • Fund may move assets into newly created investment vehicle
  • Abu Dhabi sovereign fund said working with Campbell Lutyens

Abu Dhabi’s Mubadala Development Co. is weighing options that may include moving some of its $2 billion private equity portfolio to another vehicle as part of the creation of an investment fund, people familiar with the matter said.

The sovereign fund is working with advisers at Campbell Lutyens & Co. to review alternatives for the portfolio, the people said, asking not to be identified as the information is private. No final decisions have been made, the people said.

Mubadala is looking at establishing a new investment fund that will co-invest with other partners on private equity deals, and it’s in discussions with “a number of world-class partners to explore the idea of joining us,’’ Mubadala spokesman Brian Lott said in an e-mailed statement Monday. He declined to comment further. A representative for Campbell Lutyens didn’t immediately respond to e-mails seeking comment.

Mubadala holds its private equity assets in its investment management division, Mubadala Capital. That unit holds stakes in buyout firms and investment firms such as Carlyle Group LP and Mubadala Infrastructure Partners, as well as companies including General Electric Co.

Abu Dhabi is merging Mubadala with International Petroleum Investment Co. to create an entity with assets of about $125 billion and debt of about $42 billion, with stakes in companies ranging from pipelines and chemicals to microchips. Mubadala is charged with making investments that will help diversify Abu Dhabi’s economy from oil.

The Abu Dhabi Investment Council has revived plans to sell $1.5 billion in private equity fund stakes, people with knowledge of the matter said this month. ADIC invests in private equity firms as well as infrastructure and hedge funds.