Mubadala Investment Co., the Abu Dhabi state fund with a $385 billion portfolio, plans to keep investing about $39 billion a year, or roughly a tenth of its assets, and to send a growing share of that money to Asia, its chief financial officer said.

For companies and dealmakers in Asia, the figure sets a rough ceiling on what one of the Gulf's most active investors can bring each year. With Asia now about 13% of the portfolio, a steady $39 billion annual budget means a larger pool for buyouts, private credit, infrastructure and minority stakes in China, India, Japan and South Korea, the four markets Mubadala has named as priorities.

Carlos Obeid, the CFO, set out the plan at the Milken Institute Asia Summit in Singapore on Oct. 7, according to The National. He said the fund aims to deploy the same amount every year across market cycles and has worked “diligently over the last few years” to raise its Asian exposure.

Mubadala's Asia share still trails North America

The shift is real but gradual. Asia has risen from about 10% of Mubadala's portfolio to about 13% over three years, The National reported. North America still holds the largest slice, at 44%, followed by the UAE at 24% and Europe at 15%, according to a summary of the comments by EnterpriseAM.

The longer-term target is bigger. Under its 2024 strategy, Mubadala aims for roughly 25% Asia exposure by the end of the decade, Investment Monitor reported in April.

Obeid named four themes for new money: the energy transition, technology, the reshaping of global supply chains and changing consumer habits, The National reported. Asia offers deals in all four, EnterpriseAM noted, as a large energy importer, a base for renewable-equipment and chip manufacturing, and a region where consumer spending patterns are shifting.

China already absorbs much of that. Mubadala has invested more than $20 billion in over 100 Chinese deals since 2015, according to Investment Monitor. In September it took a minority stake in Luckin Coffee alongside the chain's controlling shareholder, Centurium Capital, in a deal worth about $1 billion, The National reported. Mubadala was among the Gulf investors that pushed sovereign money into China and Hong Kong this year, as Capital Times reported in October.

In India, its holdings include a stake in Reliance Jio, the telecom arm of Reliance Industries, and it also invests through Investcorp, in which it owns 20%, according to The National.

Apollo stake and a possible China vehicle

Two other moves could change how Abu Dhabi money reaches Asia.

On Oct. 26, Mubadala Capital, the fund's alternative asset management arm, said Apollo Global Management would take a minority equity stake in the business. The price and size of the stake were not disclosed. Other strategic investors will also become minority shareholders, and Apollo and the other newcomers are expected to commit a combined $5 billion to Mubadala Capital's investment strategies at initial close, according to the companies' announcement. Mubadala Investment Co. remains the majority owner, and the deal is expected to close in the fourth quarter. A bigger third-party capital base gives the unit more firepower for private markets deals, including in Asia.

Separately, Bloomberg reported in April that Abu Dhabi was weighing whether to combine the China holdings of Mubadala and L'imad Holding, the newer state investor that took over the assets of ADQ, into a jointly owned vehicle, according to Investment Monitor's account of the report. The aim would be to stop separate Abu Dhabi entities chasing the same Chinese deals. Talks were continuing and no decision had been made, the report said, and Mubadala declined to comment.

Abu Dhabi is also putting money into regional infrastructure with Asian partners. In May, L'imad and ADNOC joined a consortium with BlackRock's Global Infrastructure Partners and Singapore's Temasek that aims to invest $30 billion in infrastructure across the Gulf and Central Asia, The National noted in an editorial.

What Asian dealmakers should watch

The constraint on the China side is political as much as financial. EnterpriseAM noted that Mubadala is likely to be careful with Chinese technology investments given heightened U.S. scrutiny of the sector, which would push more of the tech budget toward Japan, South Korea and India.

The arithmetic is simple. If the $39 billion annual pace holds and the fund moves from 13% toward 25% Asia exposure, Asian assets would have to take a well above average share of new deals for several years. Last year's portfolio grew 17% to $385 billion, The National reported; the share of that total sitting in Asia is the number to track in Mubadala's next annual results.