Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co., is reportedly in advanced discussions to acquire the distressed Brazilian fintech, Will Bank, marking a significant potential expansion of its portfolio in Latin America.
The complex negotiations also involve Brazil’s deposit-guarantee fund, FGC, and global payments giant Mastercard Inc., according to sources familiar with the matter. The proposed deal aims to stabilize the fintech, which has faced significant financial and regulatory challenges.
A Strategic Rescue Mission
Should the acquisition proceed, Mubadala is expected to inject a substantial amount of new capital into Will Bank to shore up its finances. While specific figures have not been disclosed, the move is seen as a strategic rescue effort.
Complementing Mubadala’s capital injection, the FGC is planning to provide a loan to the fintech, which includes an option to convert the debt into equity at a later stage. Mastercard, a key partner for Will Bank, has also agreed to provide support by extending payment deadlines for its service fees, offering the fintech crucial operational breathing room.
Navigating Regulatory Hurdles
Will Bank’s troubles are closely linked to its previous owner, Banco Master, which acquired the fintech in 2024. Brazil’s central bank announced last month its intention to liquidate Banco Master following allegations of fraud.
However, Will Bank is not part of the liquidation process. Instead, it has been placed under the central bank’s special temporary administration regime, which is tasked with finding a viable path forward for the company, with the Mubadala-led acquisition being a primary option.
Will Bank’s Financial Position
Will Bank focuses on offering credit cards to lower-income customers in Brazil through its partnership with Mastercard. As of December 2024, the fintech reported 7 billion reais ($1.3 billion) in credit-card receivables.
Despite its large customer base, profitability has remained elusive. Data from Brazil’s central bank revealed that Will Bank posted a loss of 244.7 million reais in the first half of 2025, highlighting the financial pressures that necessitated the rescue deal. This potential acquisition follows Mubadala’s previous investments in Brazil, including leading a 550 million reais funding round for the Brazilian receivables exchange Cerc in October 2022.
About Mubadala Investment Co.
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi. With a portfolio spanning six continents and a presence in more than 50 countries, Mubadala invests in various sectors and asset classes to accelerate economic growth and diversification for Abu Dhabi.
Source: AGBI
