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Mubadala part of $1.95bn deal for stake in US insurance giant

WAM
Mubadala CEO Khaldoon Al Mubarak said its main investment flows were changing, with less emphasis on the US and Europe
  • Abu Dhabi’s Mubadala has partnered with Stone Point Capital
  • Together with other investors, they bought a 20% stake in Truist
  • The transaction values Truist at $14.75 billion

Mubadala Investment Company has partnered with co-investors to buy a stake in the sixth-largest insurance broker in the US.

The Abu Dhabi sovereign investor announced on Tuesday that it has partnered with primary investor Stone Point Capital and other investors to purchase a 20 percent stake for $1.95 billion in Truist Insurance Holdings, a subsidiary of Truist Financial Corporation.

Based in North Carolina, Truist Insurance Holdings operates more than 240 offices through its subsidiaries.

The transaction, which is expected to close in the second quarter of the year, represents an aggregate value of $14.75 billion for Truist Insurance Holdings, a statement said.

The deal comes as Middle Eastern sovereign wealth funds have more than doubled their investments in Western economies, including the US and Europe, from $21.8 billion in 2021 to $51.6 billion in 2022.

“Truist Insurance Holdings is a very attractive business with a leadership position in US insurance distribution, and has generated a consistently strong financial performance,” said Luca Molinari, head of financial services at Mubadala. 

Earlier this year, Mubadala bought US-based Dental Care Alliance, a dental services organisation with nearly 390 allied practices. The investment was made in collaboration with funds managed by Harvest Partners, a US-based private equity firm focused on middle-market companies.

Mubadala’s $284 billion portfolio spans six continents with interests in multiple sectors and asset classes. 

In December its CEO Khaldoon Al Mubarak said that 2023 would be a tough year for the global economy, but that the fund would be focused on opportunities serving a longer horizon.

As a global investor, he said Mubadala would continue to follow an “agnostic” investment approach looking at growth patterns and long-term sustainable returns, and would continue to focus on sectors such as renewable energy and technology.

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