Mubadala Capital targets sports investments with $10 billion TWG deal

Mubadala Capital, part of the Abu Dhabi sovereign-backed Mubadala Investment Company, is venturing into the sports sector with a $10 billion syndicated investment deal with TWG Global. This collaboration enables Mubadala to gain indirect ownership in high-profile sports franchises like the LA Dodgers, LA Lakers, and Chelsea FC, thereby entering a market dominated by its regional peer, the Public Investment Fund (PIF) of Saudi Arabia. Mubadala Capital, already managing over $30 billion in assets, including private equity, special situations, venture capital, and solutions, typically acts as a general partner, raising capital while retaining 100% ownership. However, this new alliance marks a shift, with TWG acquiring a minority stake in Mubadala Capital, thus promoting a reversal of roles for sovereign wealth funds, which traditionally act as limited partners. This partnership signifies a new era in global finance, as TWG brings a diversified portfolio, including stakes in Guggenheim Investments and AI ventures. As investor interest grows in alternative asset classes, this deal highlights the evolving dynamics and strategic positioning of sovereign wealth funds, aiming to act as capital managers in addition to being capital providers.