Mubadala and Bpifrance Deepen Ties, Committing Billions to Funds
Posted on 12/03/2021
A new agreement signed between Mubadala Investment Company and the French Ministry of the Economy, Finance and Recovery, to potentially invest €1.4 billion in French funds. These agreements are part of a wider €16.5 billion economic agreements signed between the United Arab Emirates and French companies during the visit of French President Emmanuel Macron ’s official state visit to the United Arab Emirates.
Mubadala continues to make inroads to European nations, as it has strategic relations with France, Italy, the U.K., and Russia. Bpifrance and Mubadala have built a strong relationship since the launch of the FEF Partnership in 2014 and the Innovation Partnership in 2017. In 2020, Mubadala also made a €1 billion commitment to Bpifrance’s flagship Lac1 Fund, which is focused on investing in listed French multinational companies.
Bpifrance
The first agreement between Mubadala and Bpifrance, the French public investment bank, will see the coinvestment partnerships between the two companies extended by an additional €4 billion to be invested over the next ten years, with each party committing €2 billion to the French Emirati Fund Partnership (“FEF Partnership”) and the Innovation Partnership. The FEF Partnership, which is aimed at supporting, directly or through investment funds, the development of French enterprises with a proven growth potential, has been allocated €3.2 billion.
Meanwhile, the Innovation Partnership, which is focused on investments in high-growth French technology companies and Tech/VC Funds, has been allocated €0.8 billion.
The second agreement, which is between Mubadala and the French Ministry of the Economy, Finance and Recovery, provides a framework for funds associated with the Abu Dhabi government to potentially invest €1.4 billion in funds based in France or with significant exposure to the French economy. The agreement will cover funds with exposure to all French economic sectors, including but not limited to key strategic sectors such as energy, semiconductors, and space.