Mubadala Capital, the asset management arm of UAE-based Mubadala Investment Company (Mubadala), has closed its first fund in Brazil, Brazil Special Opportunities Fund I (BSOF I), with total commitments of $322 million. dollars.
BSOF I has raised capital from a diverse set of global investors, including a leading public pension fund, family offices, corporations, private equity funds and asset managers in North America. North, Europe, Middle East and Asia.
The new fund primarily focuses on controlling positions in mature companies that are facing financial or legal difficulties, but have strong underlying business fundamentals.
This approach allows BSOF I to acquire businesses at attractive entry prices, creating a margin of safety at transaction closing that reduces BSOF I’s dependence on economic cycles in Brazil, including currency depreciation. , while retaining the upside exposure associated with a growing economy.
Mubadala Capital, headquartered in Abu Dhabi, manages over $10 billion in assets in third-party managed funds across its Brazil, private equity, public equity and venture capital businesses, and Mubadala would have been the first sovereign wealth fund to manage third-party capital on behalf of other institutional investors.
“We started investing in Brazil almost 10 years ago and over that time we have built a very talented team with a differentiated approach to the market underpinned by maximizing upside while simultaneously mitigating risk. The closing of BSOF I represents a major milestone for the Brazilian team and for Mubadala Capital,” said Oscar Fahlgren, Head of Brazil Strategy at Mubadala Capital.
In November, Brazilian President Jair Bolsonaro visited the United Arab Emirates. During his visit to Dubai, several MoUs were signed, including a partnership between the Emirates Center for Strategic Studies and Research (ECSSR) and the Alexandre de Gusmão Foundation (FUNAG); and a Memorandum of Understanding between the UAE Ministry of Education and the Brazilian Ministry of Education.
In 2021, total UAE assets in Brazil exceeded $10 billion, while 30 Brazilian companies operated in the UAE. Brazil also plans to double the value of its bilateral trade with the United Arab Emirates to $5.6 billion over the next five years.