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Wed 4 Jan 2017 01:50 PM

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Paris firm said to be in talks for Mubadala portfolio stake

Investment firm Ardian reportedly keen to buy a 50% stake in Abu Dhabi fund's private equity business for about $1bn

Paris firm said to be in talks for Mubadala portfolio stake

Ardian, a Paris-based alternative-investment firm, is reportedly in talks to take a stake in Mubadala Development Company’s $2 billion private equity portfolio.

Bloomberg reported that under the terms being discussed, the Abu Dhabi-based sovereign fund would place the assets into a new vehicle, and Ardian would buy a 50 percent stake for about $1 billion.

Citing people familiar with the matter, Bloomberg said the French firm would also provide as much as $200 million in capital for deals, adding that no final decisions have been made.

“Mubadala is still in discussions with a number of world-class investment firms to create an investment vehicle for private equity deals,” Mubadala spokesman Brian Lott was quoted as saying.

In September, it was reported that Mubadala had engaged advisers at Campbell Lutyens & Co to help it review options.

Mubadala, which is the emirate’s vehicle for making investments that will help diversify Abu Dhabi’s economy from oil, is merging with International Petroleum Investment Company (IPIC) to create an entity with assets worth about $125bn, and about $42bn worth of debt.

Mubadala reported a first-half of 2016 loss hit by lower commodity prices and weaker financial investment income.

Ardian raised $10.8 billion last year for its seventh pool dedicated to buying private equity fund stakes and has about $60 billion in assets under management.