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Mubadala Capital closes first investment fund in Brazil

BSOF I is focused primarily on control positions in mature companies that are facing some form of financial or legal distress but where the underlying business fundamentals are compelling.

Mubadala Capital, the asset management subsidiary of Mubadala Investment Company (Mubadala), has closed its first fund in Brazil Special Opportunities Fund I (BSOF I), with total commitments of $322 million. BSOF I raised capital from a diverse set of global investors, including a leading public pension fund, family offices, corporates, private equity funds and asset managers across North America, Europe, the Middle East and Asia.

Oscar Fahlgren, head of the Brazil strategy at Mubadala Capital, said: “We began investing in Brazil almost 10 years ago and over that time we have built a highly talented team with a differentiated approach to the market underpinned by maximising upside while simultaneously mitigating risk. The closing of BSOF I represents a major milestone for the Brazil team and for Mubadala Capital. To have the opportunity to partner with a group of leading institutional investors from across the world is both a privilege for us and a meaningful vote of confidence by the market in our ability to originate compelling new investment opportunities and create value across our portfolio in order to deliver strong returns to our investors.”

BSOF I is focused primarily on control positions in mature companies that are facing some form of financial or legal distress but where the underlying business fundamentals are compelling. This strategy enables BSOF I to acquire businesses at attractive entry prices, creating a margin of safety at the closing of the transaction that reduces BSOF I’s dependency on Brazil’s economic cycles including currency depreciation while retaining the upside exposure associated with a growing economy.

Mubadala Capital is a differentiated and value-added investor that is able to source proprietary investment opportunities on a global basis while actively leveraging the Mubadala network in its various business activities. Its highly disciplined and institutionalized process of evaluating investment opportunities provides unique advantages to the benefit of its investors.

Mubadala Capital manages over $10 billion of assets in third-party managed funds across its Brazil, private equity, public equities and venture capital businesses, and Mubadala was the first sovereign wealth fund to manage third-party capital on behalf of other institutional investors. The growth of Mubadala Capital as a global asset management firm with headquarters in Abu Dhabi and a focus on international investment activities is a further testament to Mubadala’s entrepreneurial approach to business building and a continued diversification away from a reliance on natural resources. — business@khaleejtimes.com