July 15, 2019 (Hong Kong)
Nasdaq have published an article asserting that Mubadala and the Qatar Investment Authority (QIA) are unafraid of big flashy, attention-grabbing investments (e.g. QIA’s eye-catching luxury hotel deals or Mubadala’s $15 billion into Masayoshi Son’s tech-focused Vision Fund). The article goes on to say that the Abu Dhabi Investment Authority (ADIA) by contrast is more like a steady and reliable Volvo, opting for more straightforward areas like infrastructure or insurance. ADIA’s solo investments are in minority stakes; big buyout deals are handled with several other partners; with private equity still only 10% of its assets.
For context, the article noted that on July 15, ADIA said that 40% of its private equity investments in 2018 (compared to 30% in 2017) were direct investments, compared to those undertaken as a Limited Partner in a fund managed by a separate General Partner. There is a noticeable drop in ADIA’s 20-year annualized rate of return in 2018, dropping from 6.5% in 2017 in 5.4% in 2018.
Read the original article on Nasdaq: Abu Dhabi’s private equity plunge is sensible idea