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Caisse des Dépôts in €1bn Mubadala tie-up

Caisse subsidiaries CDC IC and Bpifrance are linking up with the sovereign wealth fund to invest in French companies, the seventh such partnership formed by the French state-owned investor.

Last week, Abu Dhabi-based Mubadala Investment Company partnered with two French state investment firms to commit up to €1 billion to the French economy.

The three are to form a co-investment vehicle with two distinct parts. The first, a partnership between Mubadala and CDC International Capital, whose remit is to invest in the French economy alongside sovereign wealth funds, will invest in French companies with proven growth potential in strategic sectors such as healthcare and education. The partnership was originally inked in 2014, but this latest agreement increases its value from €300 million to €500 million.

The second part is a tie-up between Mubadala and another Caisse des Dépôts subsidiary Bpifrance, which provides financial support for companies from seed to exit. The two will invest up to €500 million in French tech companies through a mix of direct investment and venture capital fund investments.

According to Laurent Vignier, chief executive of CDC IC, his organisation has 25 investment professionals working on the partnership, which has already resulted in one exit for a 25 percent internal rate of return.

This partnership between Mubadala and Bpifrance is the seventh such tie-up between a French state-backed firm and an international sovereign partner. They are outlined below.