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Two of Abu Dhabi sovereign wealth fund Mubadala’s subsidiaries have acquired stakes in companies overseas, with one of the transactions seeing Mubadala Capital receive outside equity for the first time.
#1- Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth fund Mubadala, is acquiring a 42% stake in Los Angeles-based credit investment firm Silver Rock Financial through a combination of cash and equity, according to a press release. As part of this agreement, Mubadala Capital will also receive an equity investment from Milken’s family office, marking the first time the Abu Dhabi-based firm has accepted outside equity.
Who’s on board? CEO and CIO of Silver Rock Financial Carl Meyer, Co-founder and Co-Portfolio Manager Michael Haberkorn; and M-Cor Capital, the investment arm of the Milken Family Office.
Mubadala Capital will also commit USD 1 bn in funds to Silver Financial over time, the statement said, without clarifying a specific timeline or targeted funds.
About Silver Rock: Silver Rock — which is backed by the family office of financier Michael Milken, known as the “junk bond king” — manages around USD 10 bn in assets, specializing in structured products and high-yield debt.
It’s not the first tie-up between Mubadala and Silver Rock: The two firms worked together on the 2012 takeover of EMI Music Publishing, which they sold to Sony for USD 4.75 bn in 2018.
This acquisition marks the latest in a series of moves to push further into private credit investments, with the sovereign wealth fund recently extending its multi-bn-USD partnership with US-based Apollo Management, focusing on private debt and equity financing.
#2- Mubadala secures a minority stake in Zelis: Mubadala Investment Company completed its acquisition of a minority stake in Zelis, a US-based healthcare tech provider, according to a press release. The sovereign wealth fund led the investment, joined by a group of investors including Norwest and HarbourVest.
Mubadala had been working on this agreement since October, which was said to value Zelis at around USD 17 bn. The transaction was also said to involve a mix of equity and debt to acquire the stake from Bain and Parthenon Capital, which remain majority owners.
ADVISORS- Goldman Sachs and JP Morgan advised Zelis, with legal counsel from Kirkland & Ellis. Mubadala was advised by Evercore, with Akin Gump as legal counsel.
Mubadala has been on an acquisition spree this year: Highlights include teaming up with private equity firms to buy US-based Truist Insurance Holdings for USD 12.4 bn in February — the largest acquisition of 2024 — and co-investing USD 8.3 bn in Dalian Wanda’s mall unit, the third-largest transaction of the period.
