Bpifrance, Caisse des Dépôts’ subsidiary CDC International Capital, and Abu Dhabi’s sovereign wealth private equity vehicle Mubadala Capital have teamed up to put €1bn into private equity-style investments in businesses in France.
Half of the fund will be used to support and increase the size of an existing investment vehicle funded by CDC and Mubadala. Known as “FEF” (the Franco-Emirati Fund) and launched in 2014, it backs French companies in a range of sectors with proven growth potential. It has already made €300m of investments.
The other half of the new fund, provided by Bpifrance and Mubadala, will be invested in both startup and mature technologies companies. They will be backed both directly and through venture funds. The fund will focus on fast-developing parts of the technology world, including information and communications, biotechnology, and green technology.
“We see France as a significant growth market, in both established and new enterprises. We want to build on our successful partnership by expanding our investments in areas we believe hold long-term commercial potential for both France and the United Arab Emirates, said Waleed Al Mokarrab Al Muhairi, chief executive of Mubadala’s alternative investments and infrastructure division.
The agreement between the parties was signed during the recent official visit of French president Emmanuel Macron to Abu Dhabi.
Earlier this year, Ardian, also a French investor, announced that it would become a lead backer of a new private equity fund from Mubadala and acquire a majority stake in a private equity portfolio managed by Mubadala in a $2.5bn (€2.2bn) deal.