Key Takeaways
- • Apollo Global Management is finalizing a deal to acquire a nearly 10% stake in Mubadala Capital, the alternative asset manager subsidiary of Abu Dhabi's sovereign wealth fund Mubadala Investment Company, according to people familiar with the matter.
- • Financial terms of the transaction were not immediately known, and the deal was expected to be announced on Monday morning; spokespersons for both firms declined to comment.
- • Mubadala Capital advises and administers over $755 billion in assets and runs an alternatives business of more than $60 billion, making it the region's only large-scale asset manager, according to the report.
- • The deal deepens an existing relationship: Apollo and Mubadala Investment Company have a multibillion-dollar partnership dating to 2022, extended later, and a $2.5 billion private credit joint venture formed in 2023.
- • The transaction reflects a shift in capital flows, with a US asset manager making a significant direct investment in Abu Dhabi rather than only sourcing capital from the region.
Summary
Apollo Global Management is finalizing a deal to buy a nearly 10% stake in Mubadala Capital, the alternative asset management subsidiary of Abu Dhabi's sovereign wealth fund, Mubadala Investment Company, according to people familiar with the matter who spoke on condition of anonymity, as reported by CNBC. The deal was expected to be announced later on Monday morning, and financial terms were not immediately known.
The transaction builds on Apollo's long-standing presence in Abu Dhabi, which the firm has cultivated over roughly 15 years through relationships with the emirate's investment arm and core leadership. Apollo already has a multibillion-dollar partnership with Mubadala Investment Company, first established in 2022 and extended two years ago to jointly source and provide customized debt and equity financing to companies worldwide. In 2023 the two institutions formed a $2.5 billion joint venture to co-invest in global private credit opportunities over a five-year horizon.
Mubadala Capital, described as the region's only large-scale asset manager, advises and administers more than $755 billion in assets. Its alternatives business has grown to more than $60 billion, and the stake purchase is described as an inflection point for that business and a further step in its growth strategy under CEO Hani Barhoush. Sources said the close working relationship between Barhoush and John Zito, co-president of Apollo's Asset Management arm, along with the success of earlier partnerships, led to talks about deepening ties. One person familiar with the deal said, "Capital as a moat is a big thing," reflecting a belief that scale in asset management matters more than ever.
The investment is similar to other stakes Apollo has taken in asset management platforms, including Diameter Capital, Thoreau, and Motive Partners. Mubadala Capital's international offices are located in London, New York, Rio de Janeiro, and San Francisco.
The transaction builds on Apollo's long-standing presence in Abu Dhabi, which the firm has cultivated over roughly 15 years through relationships with the emirate's investment arm and core leadership. Apollo already has a multibillion-dollar partnership with Mubadala Investment Company, first established in 2022 and extended two years ago to jointly source and provide customized debt and equity financing to companies worldwide. In 2023 the two institutions formed a $2.5 billion joint venture to co-invest in global private credit opportunities over a five-year horizon.
Mubadala Capital, described as the region's only large-scale asset manager, advises and administers more than $755 billion in assets. Its alternatives business has grown to more than $60 billion, and the stake purchase is described as an inflection point for that business and a further step in its growth strategy under CEO Hani Barhoush. Sources said the close working relationship between Barhoush and John Zito, co-president of Apollo's Asset Management arm, along with the success of earlier partnerships, led to talks about deepening ties. One person familiar with the deal said, "Capital as a moat is a big thing," reflecting a belief that scale in asset management matters more than ever.
The investment is similar to other stakes Apollo has taken in asset management platforms, including Diameter Capital, Thoreau, and Motive Partners. Mubadala Capital's international offices are located in London, New York, Rio de Janeiro, and San Francisco.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.