Abu Dhabi’s sovereign investment arm, Mubadala, is set to take a “significant stake” in PCI Pharma Services, a US-based biopharmaceutical supply chains provider.
It will be joined by US private equity firm, Kohlberg, which has also signed an agreement to acquire a majority stake from private markets investment manager Partners Group which will retain a minority equity stake in the company.
“Outsourced pharmaceutical services has been a key investment theme for us over the past few years,” said Camilla Macapali Languille, head of pharma and medtech at Mubadala.
Earlier this year Mubadala’s venture capital arm, Mubadala Ventures, announced plans to launch a healthcare and life sciences fund in 2021 stating that investment in this space is “only going to accelerate forward”.
The investment also comes at a time when sovereign wealth funds are investing heavily in US stocks. According to data from eVestment, a net $7.1 billion was invested in US stocks in Q2 while a net $5.2 billion was pulled from fixed income investments. Such a strategy is a typical hedging strategy for oil dependent sovereigns given the negative correlation between equities and oil prices.
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