Mubadala Capital, backed by the sovereign wealth of Abu Dhabi, is setting its sights on investing in sports assets through a new multi-billion-dollar agreement with TWG Global. This deal will see the UAE asset manager lead and anchor a $10 billion syndicated investment in the US holding company.
Sovereign wealth fund tracker Global SWF described the partnership as “a new chapter in global finance” on its news blog, noting that a private investment firm like TWG is also purchasing a minority stake in a sovereign wealth fund’s asset management platform for $2.5 billion. The aim is to increase commitments to an additional $20 billion in investment capital.
TWG’s portfolio includes notable brands such as the LA Dodgers, LA Lakers, and Chelsea FC.
“This partnership provides Mubadala with indirect ownership exposure to iconic Western sports franchises, a shrewd move, amidst the rising valuations of global sports assets and the convergence of content, fan engagement, and streaming monetisation,” said Global SWF. “Through TWG, Mubadala is gaining the sports and leisure exposure that its Saudi counterpart, the Public Investment Fund (PIF), has had to build from scratch, starting its own direct investments.”
In recent years, Saudi Arabia’s $940 billion sovereign investment fund, PIF, has quickly become one of the most influential sports investors globally, placing funds in sectors ranging from golf and combat sports to esports and tennis. However, the Mubadala Capital-TWG deal may mark a shift in the balance of power, potentially altering the future of the sports industry, according to the fund tracker.
“What is particularly interesting is the overlap between the two entities, with TWG Global bringing a portfolio rich in sports franchises such as the LA Dodgers, Lakers, and Chelsea FC, along with stakes in Guggenheim Investments and Palantir-related AI ventures. On the other hand, Mubadala Capital has been actively acquiring sports media assets and mid-market entertainment companies via its MIC Capital Partners funds,” added Global SWF.
In a joint statement, Mubadala Capital and TWG confirmed that the deal comes “amid growing investor interest in a broad range of alternative asset classes and cross-border investment opportunities.”
Mubadala Capital, a subsidiary of Mubadala Investment Company, manages over $30 billion in assets across its four investment divisions: private equity, special situations, solutions, and venture capital.
According to Global SWF, the significance of this partnership is heightened by TWG’s acquisition of a minority stake in Mubadala Capital, which signals a “reversal of roles” compared to previous instances where sovereign wealth funds typically acted as limited partners (LPs) in private equity funds, allocating capital to entities such as BlackRock, Ardian, or KKR.
“In most previous cases, Mubadala Capital operated as a GP (general partner), raising capital from LPs such as US pensions or other sovereign funds, while retaining 100% ownership under its parent, Mubadala Investment Company. TWG’s entry as an equity partner in the manager disrupts this structure,” said Global SWF.
“This model could signal the beginning of a trend. Sovereign wealth funds, with their vast pools of capital, increasingly seek to earn fees on top of returns. Mubadala was the first SWF to manage capital for external investors. Now, with TWG’s investment, it is also showing that sovereign wealth funds themselves can evolve into investable businesses.”
