Abu Dhabi’s Mubadala Development Company is weighing options that may include some of its USD2bn private equity portfolio to another vehicle as part of the creation of an investment fund. The sovereign fund is working with advisers to review alternatives for the portfolio. Mubadala is looking at establishing a new investment fund that will co-invest with other partners on private equity deals. Mubadala holds its private equity assets in its investment management division, Mubadala Capital. That unit holds stakes in buyout firms and investment firms such as Carlyle Group and Mubadala Infrastructure Partners, as well as companies including General Electric. Abu Dhabi is merging Mubadala with International Petroleum Investment Company (IPIC) to create an entity with assets of about USD125bn and debt of about USD42bn, with stakes in companies ranging from pipelines and chemicals to microchips. Mubadala is charged with making investments that will help diversify Abu Dhabi’s economy from oil. (Bloomberg)