Abu Dhabi’s Mubadala pours $10B into TWG Global

Mubadala has put a fresh spin on Gulf sovereign wealth funds’ seemingly insatiable appetite for foreign investments — by selling a piece of its asset management business to an American private equity firm.

A two-way deal with TWG Global, the investment firm led by Guggenheim Partners founder Mark Walter and entertainment financier Thomas Tull, will see TWG invest $2.5 billion for a 5% stake in Mubadala Capital, only the second time an outside investor has been allowed to own a piece of the Abu Dhabi fund. Mubadala Capital, for its part, is leading a $10 billion investment in TWG’s $15 billion equity raise, the companies said.

The relationship gives Abu Dhabi’s second-largest sovereign fund exposure to TWG’s partnerships and holdings that include sports franchises like the LA Dodgers, LA Lakers, and Chelsea soccer club. “One thing is clear: the lines between allocator, manager, and owner are blurring fast,” Global SWF said of the deal.

The deal is also one of many signs to come of the UAE’s decade-long commitment to invest $1.4 trillion in the US.