Mubadala Capital, the wholly-owned asset management subsidiary of Emirati Mubadala Investment Company, announced it held a final close on its second flagship investment fund in Brazil, BSOF II, with total commitments of $710 million.
BSOF II (Brazil Special Opportunities Fund II), has raised capital from numerous global investors, including a leading public pension fund, family offices, corporates, private equity funds, and asset managers across North America, Europe, the Middle East, and Asia.
Oscar Fahlgren, Mubadala Capital’s Chief Investment Officer and Head of the Brazil strategy said: “The consummation of our second Brazilian flagship fund marks a decade-long track record of successfully operating and investing in Brazil.
“Our team has developed extensive experience evaluating and completing complex investments, even in situations where the macro-economic environment is not always favorable.
“We believe that the success of this fund-raise is a testament to both our consistent investment strategy and the strength of our local investment team. Of course, none of this would be possible without the support of our existing and new limited partners who have entrusted us with their capital,” Fahlgren added.
BSOF II will continue its strategy of investing first in control positions in mature companies that are facing some form of complexity, but where the underlying business fundamentals are compelling.
Meanwhile, Mubadala Capital’s energy company Acelen announced it will invest $2.5 billion in the next 10 years to produce renewable diesel and sustainable aviation kerosene in the Brazilian state of Bahia, to help cover the global high demand for clean fuels.
This strategy enables BSOF II to acquire these businesses at attractive entry points, creating a margin of safety at the closing of the transaction that reduces BSOF II’s dependency on Brazil’s economic cycles, such as currency depreciation while retaining upside exposure aligned with a growing economy.
Mubadala Capital was the first sovereign wealth fund to manage capital on behalf of third-party institutional investors, and it is also managing $20 billion in aggregate across its own balance sheet investments and third-party capital vehicles across its Private Equity, Solutions, Venture Capital, and Brazil businesses.
According to its official website, the asset management company has over $20 billion of assets under management, with $13 billion of third-party capital on behalf of global institutional investors.
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