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The Abu Dhabi sovereign-backed Mubadala Capital is training its sights on investing in sporting assets through a new multi-billion-dollar deal with TWG Global, which will see the UAE asset manager anchor and lead a $10 billion syndicated investment in the US holding company.
Sovereign fund tracker Global SWF called the partnership “a new chapter in global finance” in its news blog, where a private investment firm like TWG was also acquiring a minority stake in a sovereign wealth fund’s asset management platform for $2.5 billion, with the aim to increase commitments to another $20 billion of investment capital.
TWG’s asset portfolio includes brands such as the LA Dodgers, LA Lakers and the Chelsea FC.
“This partnership gives Mubadala indirect ownership exposure to iconic Western sports franchises - a savvy move - amid the rising valuation of global sports assets and the convergence of content, fan engagement, and streaming monetisation,” Global SWF said. “Through TWG, Mubadala is gaining the sports and leisure exposure that its Saudi peer, the Public Investment Fund (PIF), has had to build from scratch, originating its own direct investments.”
Over the past few years, Saudi Arabia’s $940 billion sovereign investment fund, PIF, has rapidly emerged as one of most influential sports investors in the world, with money riding on everything from golf, combat sports, to esports and tennis. But the Mubadala Capital-TWG deal calls for a possible shift in the power dynamics that could change the future of the sporting arena, the fund tracker said.
“What’s especially compelling is the sectoral overlap between the two entities with TWG Global bringing a portfolio rich in sports franchises, such as the LA Dodgers, Lakers, and Chelsea FC, as well as stakes in Guggenheim Investments and Palantir-related AI ventures. Mubadala Capital, for its part, has been actively acquiring sports media assets and mid-market entertainment companies through its MIC Capital Partners funds,” Global SWF added.
In a joint statement, Mubadala Capital and TWG said the deal comes “amid increasing investor interest in a wide variety of alternative asset classes and cross-border investment opportunities.”
Mubadala Capital, a subsidiary of Mubadala Investment Company, manages over $30 billion of assets through its four investment businesses, including private equity, special situations, solutions, and venture capital.
According to Global SWF, what makes this partnership even more compelling is TWG’s acquisition of a minority stake in Mubadala Capital, signalling a “reversal of roles” that have previously seen sovereign wealth funds act as limited partners (LPs) in private equity funds, whereby allocating capital to funds managed by groups such as BlackRock, Ardian, or KKR.
“In most previous cases, Mubadala Capital functioned as a GP (general partner) raising capital from LPs like US pensions or sovereign peers, while retaining 100% ownership under its parent, Mubadala Investment Company. TWG’s entry as an equity partner in the manager upends that structure,” Global SWF said.
“This structure could be the start of a trend. Sovereign wealth funds are sitting on vast pools of capital but increasingly want to earn fees on top of returns. Mubadala was the first SWF to manage capital for external investors. Now, with TWG’s investment, it’s also demonstrating that SWFs themselves can become investable businesses.”
(Writing by Bindu Rai, editing by Seban Scaria)
