Mubadala could invest more in Revolut: Abu Dhabi sovereign wealth fund Mubadala is eyeing ramping up investments in multiple British firms in which it is already a shareholder, according to multiple reports.

#1- GBP 500 mn for CityFibre? Mubadala and other existing shareholders, including Goldman Sachs, are in late-stage talks to invest an additional GBP 500 mn in British telco CityFibre, sources familiar with the matter told The Financial Times. The capital injection is part of a larger GBP 2.3 bn refinancing plan aimed at strengthening the company’s financial position.

As part of the broader package, CityFibre is also securing up to GBP 960 mn in new debt from lenders such as NatWest, ING, and Société Générale, with an option included to increase the facility by a further GBP 800 mn. The financing agreement is expected to close today, according to the sources.

CityFibre has faced ongoing funding challenges, warning in its 2023 financial results that it could run out of liquidity by mid-2025. The company also flagged uncertainty over its ability to continue operating without fresh external financing.

The network provider plans to use the funds to double its customer numbers by the end of 2025, through acquiring smaller companies in the market. A key part of CityFibre’s growth plan is a newly activated agreement with Sky, enabling the broadcaster to offer broadband services over CityFibre’s fibre network. The agreement gives CityFibre potential access to Sky’s 5.7 mn broadband customers, allowing it to widen its subscriber base.

#2- Mubadala is looking to increase its stake in global fintech and neobank Revolut after acquiring a stake as part of a USD 500 mn share sale last year, the Financial Times reported separately, quoting two people familiar with the matter. Revolut is seeking USD 1 bn in a funding round through a sale of existing stock and issuance of new shares to fund its strategic expansion. The capital raise could be led by US investment firm Greenoaks, the salmon-colored paper reports.

The wealth fund could acquire a USD 100 mn stake from existing shareholders, according to Sky News. The identities of the sellers have not been disclosed, but reports have said early investor Balderton Capital is looking to sell some of its holdings.

Mubadala has been ramping up its British investments in 2025. A Mubadala subsidiary acquired a 12.8% stake in graphene-based technology provider Paragraf last month, according to a UK Cabinet statement. Earlier in April, it acquired a USD 600 mn minority stake in private education provider Nord Anglia Education.

REMEMBER- Mubadala has been in talks with UK Prime Minister Keir Starmer as he looks to secure funding for a range of projects and works to improve ties with Gulf countries, including the UAE.

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