Mubadala steps up Asia investment drive

Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, led a Rs10 billion funding round of Avanse Financial Services, India’s education-focused non-banking financial company.

The new investment, which is in line with the wealth fund’s target of doubling its exposure in Asia by 2030, marks Mubadala’s first in the financial services sector in India.

Mubadala led this round of funding through its affiliate Alpha Investment Company with participation from Avendus PE Investment Advisors Private Limited via its fund Avendus Future Leaders Fund II.

The funds will enable Avanse to strengthen its position in the rapidly evolving education financing segment, focusing on creating unique customer experiences and achieving sustained profitable growth.

Of the nearly $300 billion in assets under management, Mubadala has only 12 per cent in Asia today. Mubadala, one of Abu Dhabi’s three main sovereign wealth funds charged with helping diversify Abu Dhabi’s economy, wants to move that number closer to 25 per cent by as soon as 2030.

Avanse is the second-largest NBFC in the education finance space in India and has been on a strong growth trajectory as it plays a transformational role in the education financing sector and has fulfilled the educational dreams of Indian academic aspirants across various countries. The company has also provided growth and working capital to Indian educational institutions As of December 2023, the company’s AUM stands at Dh5.5 billion.

“Avanse will continue to enable young generations of Indian students to fulfil their aspirations. We are thrilled to partner with Amit and the management team of Avanse alongside institutions of the caliber of Warburg Pincus, Kedaara Capital and the IFC. We look forward to further enabling the growth of the business,” said Luca Molinari, head of Asia and Financial Services at Mubadala.

“Avanse, driven by its vision to democratise education in India, has transformed into one of India’s premier education finance companies. We are thrilled to collaborate with Mubadala Investment Company as Avanse continues to advance its long-term objectives,” said Namenda Ostawal, managing director and head of India, Warburg Pincus.

Global SWF expects assets of state-owned Investors, including sovereign wealth funds, public pension funds, and central banks, to reach $54.9 trillion by 2025 and $71.0 trillion by 2030.