Mubadala Investment Company “Mubadala” announced; The Sovereign Investment Company in Abu Dhabi, on the group’s financial results for the year 2022.
Despite the many economic challenges witnessed in 2022, which greatly affected financial markets and investor sentiments, Mubadala achieved levels of performance that exceeded global indicators, thanks to the effective management of its investment portfolio, the strong placement of investments, and the sale of a number of mature assets at the appropriate value and at the right time. appropriate.
On this occasion, His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and CEO of the Group, said: “It was the vision of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the State, “may God protect him,” and the directives of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President and Deputy Prime Minister and Minister The Presidential Court, Chairman of the Board of Directors of the company, is the biggest motivation for us to move forward in our path and maintain the pace of strategic growth of the group in the main business sectors.”
He added: “Despite the global challenges that greatly affected the financial markets and investors’ attitudes, we achieved levels of performance that exceeded global indicators, and we maintained our long-term strategic approach to investing in key markets and business sectors.”
Al-Mubarak referred to Mubadala’s investments in 2022. He said: “We have invested 107 billion dirhams in business sectors that shape the future and work to make a positive impact, including life sciences, renewable energy and digital infrastructure. We invested in sectors that provide stable financial returns.” such as traditional real estate and infrastructure.We were also keen to invest more in other alternative investments, including private equity and private credit, to overcome any fluctuations in traditional asset classes.On the other hand, we achieved revenues of AED 106 billion from the sale of a number of Mature assets at the appropriate value, with the aim of employing them in new investments in business sectors and geographies with high potential, including Asia, which we believe has great investment potential in the areas of technology, digital infrastructure and energy transition.
He added, “Although the global economic conditions are still unstable, we will continue to focus on long-term investments based on our convictions and investment approach.”
In line with its strategy to invest in business sectors that shape the future, Mubadala invested 107 billion dirhams in the sectors of life sciences, renewable energy and digital infrastructure, and completed two of the largest 10 deals in the field of healthcare in 2022, as it invested with the company “E QT at Envirotainer; Global provider of transportation chain solutions for temperature sensitive medicines and pharmaceuticals.
It also invested, along with Warburg Pincus, in the $2.6 billion acquisition of Informa Pharma Intelligence; It is a data and software company for clinical trials and drug development, and after the deal was completed, the company acquired a stake in it and rebranded it to “Norstela”.
In the field of renewable energy, Mubadala invested $525 million with BlackRock in Tata Renewable Energy; One of India’s largest renewable energy companies, building on Mubadala’s fast-growing clean energy portfolio.
Mubadala also acquired a 100% stake in Skyburn Renewables; The world’s largest private developer of offshore wind power, along with Global Infrastructure Partners. also closed a deal to buy Global Infrastructure Partners’ 50% stake in Bluepoint Wind; It is an innovative project with a capacity of 1.6 gigawatts off the coast of New Jersey and New York.
During 2022, Mubadala invested in several digital infrastructure projects, as the company invested $350 million in Princeton Digital Group; Asia’s leading data center company, along with an additional £300m commitment in Cityfiber; The UK’s largest integrated fiber platform, completing an initial £500m investment in the company.
During 2022, Mubadala made many investments in real estate, infrastructure and alternative investments, including private equity and private credit. The company started investing in credit investments in the European real estate market through a joint venture with Aris Company. Specializing in alternative investments, in addition to a $2.1 billion partnership deal in a portfolio of private equity assets with the French private investment company, Ardian, through Mubadala Capital, which is wholly owned by Mubadala Group and specialized in asset management, in addition to a partnership with KKR Investment Company. in the area of private credit in the Asia-Pacific region.
Mubadala achieved revenues of AED 106 billion with the aim of investing in new investments in high-growth business sectors, including the sale of a 24.9% stake in Borealis, the leading basic chemicals and fertilizers company based in Austria. The group, along with Trafigura, also made by selling MATSA for $1.87 billion. Mubadala also sold its remaining stake in Glencore.
At the end of 2022, the Mubadala Group maintained assets worth more than one trillion dirhams.
In this regard, Carlos Obaid, Group Chief Financial Officer, said: “As a sovereign investor, we enjoy a long-term investment horizon. Our five-year cumulative return of 8.5%, and our return in 2022 of (-3.1%), indicate that Mubadala has outperformed by a degree We will continue to focus on investment placement operations in line with our strategy and effective investment management, which confirms the strength of our business and investment approach.”
It is noteworthy that Mubadala has outperformed the main stock market indices in 2022, which witnessed a significant decline, including the Nasdaq Composite Index (-33.1%), the Standard & Poor’s 500 (-19.4%) and the Dow Jones Industrial Average (-8.8%). .
The most prominent financial and operational achievements for the year 2022:
• Employing investments worth AED 107 billion, in line with the company’s strategy, in sectors such as life sciences, renewable energy and digital infrastructure.
• A diversified and consistent investment portfolio year after year, consisting of 36% direct and indirect investments in private companies, 27% in listed shares, and 15% in real estate and infrastructure.
• Achieving revenues of AED 106 billion from the sale of a number of mature assets, and investing the return in new investments in priority investment areas, in line with the company’s strategy and responsible investment agenda.
• Maintaining assets worth more than AED 1 trillion, with strong performance in real estate, infrastructure and alternative investments, including private equity and private credit.
• Gearing ratio of 8.5 percent, down from the previous year, reflecting prudent capital management and a strong monetary position to manage the current economic cycle with a long-term view.
Mubadala had announced its intention to start publishing multi-year benchmark comparisons, instead of other measurement indicators such as annual return, net income, or total comprehensive income, which no longer apply to Mubadala as a long-term investor, and the company issues multi-year measurement indicators, which is what it started In announcing it since 2021.