Abu Dhabi’s Mubadala Ventures plans health fund as coronavirus drives demand

Mubadala’s venture arm has invested in VIR Biotechnology, which is developing potential treatment for COVID-19, the illness caused by the new coronavirus. (National Institutes of Health/AFP)

• Ventures is part of state investor Mubadala Investment, which manages about $240 billion
• Proliferation of technologies and health care companies in the coming years predicted

DUBAI: The venture capital arm of Abu Dhabi state investor Mubadala plans to launch a health care fund next year to tap into increased demand for investment in life sciences and digital health technology following the coronavirus outbreak.
“We are considering next year developing a sort of health care-specific fund that can be focused on life sciences and health care over the coming decade,” Ibrahim Ajami, who heads Mubadala’s Ventures business, said.
“Our view is that investments in this space ... are only going to accelerate moving forward.”
Ventures is part of state investor Mubadala Investment Co, which manages about $240 billion. The state investor has itself invested in the health care sector, including in Cleveland Clinic Abu Dhabi and home health care services firm Amana Healthcare, which it acquired last year.
Without giving specific detail, Ajami said he expected the new fund to be bigger than the Venture capital arm’s previous launches, such as a €400 million ($437.24 million) European fund launched last year as Ventures expanded its portfolio, initially focused on the United States, into Europe.
He predicted a proliferation of technologies and health care companies in the coming years, focused on areas such as quick testing, personal diagnosis of symptoms and developing supply chains around health care.
“It is proven now that one epidemic like this can bring down the entire world. The role of technology becomes very, very important, specifically in life sciences and the health care space,” he said.
Ventures has invested in health care and life sciences over the past four years.
Apart from the European fund launched last year, Ventures manages a $400 million U.S-focused fund and a $250 million Middle East and North Africa (MENA) fund.
It also manages and oversees Mubadala’s partnership with SoftBank, including its $15 billion commitment to the SoftBank Vision Fund.
Mubadala’s venture arm has invested in VIR Biotechnology, which is developing potential treatment for COVID-19, the illness caused by the new coronavirus, and Innovaccer, a San Francisco-based health care technology company.