Thoughts on MGX in Abu Dhabi?

Based on the most helpful WSO content, here's what you need to know:

1. MGX and Mubadala/G42 Spin-Out: While there isn't specific mention of MGX in the dataset, Mubadala and its related entities are known for their significant financial backing and involvement in high-profile deals. Mubadala has historically leaned towards co-investments, but if MGX is taking a more active lead role in deals, it could signal a shift in strategy. Their participation in AI and crypto deals like Binance, OpenAI, and Databricks aligns with the trend of sovereign wealth funds (SWFs) diversifying into tech and growth sectors.

2. Lifestyle and Compensation in Abu Dhabi PE:

   • Lifestyle: Abu Dhabi is often praised for its safety, high-quality schools, and affordable childcare, making it an attractive location for families. Expat life in the UAE is generally comfortable, with a focus on family-friendly amenities.
   • Compensation: Compensation at SWFs like Mubadala is competitive, often comparable to mid-market or upper mid-market US funds, with the added benefit of low or zero taxes for non-US citizens. However, the hierarchical nature of these organizations can limit individual responsibility and decision-making at junior levels.

3. Exit Opportunities Back to the US:

   • Moving back into US or European corporate private equity after a stint in Abu Dhabi can be challenging. The experience at SWFs like Mubadala is often discounted in traditional PE circles due to the niche regional focus and the perception of less hands-on deal experience. Many professionals in these roles pursue MBAs (often at M7 schools like Wharton) to facilitate a transition back to the US.
   • The large deal teams and bureaucratic processes in SWFs can also mean less individual deal ownership, which may impact how the experience is valued by US firms.

4. Risk and Strategy:

   • As a newer strategy, MGX may carry some risk, but its strong capitalization and backing by Mubadala/G42 could provide stability. The willingness to lead deals could also offer more dynamic and engaging deal experience compared to traditional co-investment roles.

If you're considering a move to Abu Dhabi, it seems like a great opportunity for a few years, especially with a family. However, if your long-term goal is to return to the US, you may want to plan for an MBA or other steps to bridge the gap back into the US PE market.

Sources: Non US/Europe IB/PE Overview, SoftBank Vision Fund / GIC / Temasek, What is it like to work at a sovereign wealth fund?, Non US/Europe IB/PE Overview, Top Growth Equity Investors