Mubadala, Russian fund launch $2bn co-investment vehicle

The state-backed Russian Direct Investment Fund fund has teamed with Abu Dhabi's sovereign wealth fund to invest in Russia.

The Russian Direct Investment Fund (RDIF), the $10 billion state-backed vehicle designed to promote foreign direct investment into Russia, has added another $1 billion to its coffers by teaming up with Abu Dhabi sovereign fund Mubadala Development Company.

The pair have launched a $2 billion co-investment fund that will pursue opportunities in Russia. Both parties will commit $1 billion.

The fund will make long-term investments across a range of industries in Russia, according to a statement from RDIF.
Mubadala’s money will mostly be committed to investments that will be evaluated on a deal-by-deal basis while some of the capital will be invested as an automatic co-investment into RDIF deals.

Capital will not be the only benefit for RDIF as “Mubadala’s experience and track record in multiple industry sectors will enable significant value creation in our co-investments, and will increase foreign direct investment from Abu Dhabi into Russia,” Kirill Dmitriev, chief executive of RDIF, said in a statement.

The partnership is another in a recent string of co-investment agreements signed by RDIF. Back in February it signed a memorandum of understanding with the State Bank of India (SBI): both parties will commit up to $1 billion for investments with a Russia-India angle.