General Electric and Mubadala Development Company signed recently commercial finance joint venture agreement and establishment of a regional training center for next-generation business leaders, demonstrating significant progress on key aspects of a broader strategic partnership forged by the companies last year. “The global financial services business proposed under today's agreement combines Mubadala's regional investment expertise with GE's global origination excellence in one of the world's fastest-growing markets,” GE Chairman of the Board and Chief Executive Officer Jeff Immelt said. “Having grown its Middle East-based revenues more than 60 percent in the past two years, GE clearly shares Mubadala's view of high-growth opportunities in the region.” Ensuring such regional growth remains sustainable and diversified, meanwhile, “demands developing world-class local leadership talent, which is the charter of the newly formed Abu Dhabi Leadership Development Center,” Mubadala Chief Executive Officer and Managing Director Khaldoon Khalifa Al Mubarak added. “Educating innovative business leaders for tomorrow is a top-priority focus for Mubadala and a core competency of our partner GE.” Key elements of both initiatives announced include: • Commercial Finance Joint Venture: Building on the comprehensive framework agreement announced last year, GE and Mubadala formalized the commercial finance joint venture by signing the agreement. GE and Mubadala are currently applying for certain legal and regulatory approvals needed prior to the commercial launch of the joint venture. Once approved, the joint venture will be headquartered in Abu Dhabi. GE and Mubadala each will allocate up to $4 billion in equity for the joint venture over a three-year period. The venture will have two strategic pillars; access to investment opportunities generated through GE Capital's existing global origination platform; and building a Middle East & Africa platform with select focus areas aligned to both partners' capabilities and regional presence. Ron Herman, a 25-year GE veteran, has been nominated by GE and Mubadala to serve as chief executive officer of the venture. Ron has held numerous leadership positions in GE Capital, ranging from private equity to mergers & acquisitions. Most recently, he was CEO of GE Equity.
