Reuters: Private Equity: UPDATE 1-Abu Dhabi's Mubadala sees lower investments in 2012

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UPDATE 1-Abu Dhabi's Mubadala sees lower investments in 2012 Apr 12th 2012, 11:34 Thu Apr 12, 2012 7:34am EDT * Posts 2011 loss of $1.14 bln hit by volatile mkts * Says 2012 investments to be "slightly lower" than last yr * Cash contribution from govt doubled to 28 bln dirhams in 2011 * Says supportive of Carlyle IPO; Aldar stake cut to 35 pct (Adds details from conference call) By Stanley Carvalho ABU DHABI, April 12 (Reuters) - Mubadala, the Abu Dhabi government's investment vehicle, expects its investment outlay in 2012 to be slightly lower than last year's after saying its overall annual loss surged due to volatile global markets. The state-owned fund, which has stakes in General Electric and private equity firm Carlyle, made an overall loss of 4.2 billion dirhams ($1.14 billon) in 2011, compared with a loss of 338 million dirhams in 2010, it said in a statement. Mubadala, which set a capital and investment expenditure of $16.3 billion for 2011, said that amount is expected to be lower in the current year. "It is likely to be slightly less this year. It is still a significant amount," Chief Financial Officer, Carlos Obeid said in a conference call, without specifying a figure. Cash contribution from the government more than doubled to 28 billion dirhams ($7.62 billion) from 13 billion a year-ago, Mubadala's detailed financial statements showed. Mubadala, which recently bought a $2 billion stake in Brazilian conglomerate EBX Group, incurred a loss of 3.03 billion dirhams from its financial investments compared with a profit of 355 million dirhams a year earlier, the company's financial statements showed. "While our financial investments' performance was impacted by the volatility in the global market place during 2011, we continue to maintain a long-term financial investment perspective," Khaldoon al Mubarak, chief executive and managing director said in the statement. Unlisted Mubadala saw its 2011 revenues surge 77 percent to 27.9 billion dirhams due to high energy prices last year and consolidation of its semi-conductor unit Advanced Technology Investment Company (ATIC). This compared with revenues of 15.8 billion dirhams in 2010. Total assets also grew 73 percent to 177 billion dirhams ($48.19 billion) in 2011, Mubadala said. ALDAR STAKE CUT Mubadala, one of few state-controlled vehicles to publish results, also owns stakes in local companies including indebted developer Aldar Properties and cooling firm Tabreed which it helped recapitalise last year. The fund, which holds a near-majority position in indebted Aldar, plans to transfer a 14 percent stake in the developer to secure a 500 million dirhams loan facility from Abu Dhabi Commercial Bank. After the stake transfer, Mubadala holds about 35 percent of Aldar's shares, Obeid said in the call. Last month, Mubadala said it would buy a $2 billion stake in Brazil's EBX Group, providing fresh capital to the Brazilian conglomerate of billionaire Eike Batista. "Mubadala will continue to assess geographical opportunities and multiple sectors, we are looking at other geographies and positions news to Mubadala," Waleed al Muhairy, chief operating officer said on the call. Mubadala also remains a supportive shareholder of Carlyle Group, viewing the upcoming IPO as a "positive step" and taking a long-term perspective of its investment in the private equity firm, he said. Carlyle Group LP is eyeing a market valuation of $7.5 billion to $8 billion in an initial public offering, a source with knowledge of the situation told Reuters on Tuesday. Mubadala initially bought a 7.5 percent stake in Carlyle for $1.35 billion at the top of the cycle four years ago, valuing the private equity firm at $18 billion. The 10-year old firm's total outstanding debt as of January this year is 38 billion dirhams with 5 billion dirhams due in the short-term, said Obeid, adding Mubadala has ample cash to cover it. Still, Mubadala is engaging with banks, export credit agencies and the capital markets to secure the best funding to finance its projects, he added. Abu Dhabi, which sits on most of UAE's oil reserves, is also home to sovereign wealth fund Abu Dhabi Investment Authority (ADIA). ($1 = 3.6730 UAE dirhams) (Reporting By Stanley Carvalho; Editing by Dinesh Nair and William Hardy) Link this Share this Digg this Email Reprints

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