Mubadala Adds to Tech Exposure With $400 Million European Fund

(Bloomberg) -- Mubadala Investment Co. plans to create a $400 million fund to invest in European technology companies as the Abu Dhabi wealth fund increases its exposure to the sector.

SoftBank Group will participate as a strategic investor in the fund that will be managed by Mubadala Ventures, the Abu Dhabi-based fund said in a statement. "The fund will target founder-led, high-growth technology companies with global scale and impact."

Mubadala -- created in 2002 -- is part of Abu Dhabi’s effort to diversify its economy by turning oil revenue into profitable investments while also attracting technology and jobs to the emirate. Its investments include Globalfoundries Inc., a California-based maker of semiconductors, and a stake in Advanced Micro Devices Inc. Mubadala said last year it will invest as much as 500 million euros in French companies, including those involved in technology.

"As part of its European strategy, Mubadala Ventures will expand its fund of funds program and invest in both established and emerging fund managers across the continent," according to the statement. "It will also facilitate the process for European tech companies to establish operations in Abu Dhabi to target the Gulf and Middle East markets."

Mubadala Ventures also manages Mubadala’s $15 billion commitment to the SoftBank Vision Fund, Mubadala Ventures Fund 1 and a fund of funds program that includes Data Collective, 8VC, Foundry Group, and Upfront Ventures.

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