Key Takeaways
- • Apollo Global Management will acquire a minority stake of nearly 10% in Mubadala Capital, the alternative asset management subsidiary of Abu Dhabi wealth fund Mubadala, according to a person familiar with the matter.
- • Apollo is expected to commit an aggregate $5 billion to Mubadala Capital's investment strategies alongside other strategic investors who will join as minority shareholders, per Mubadala Capital's statement.
- • Mubadala had assets under management of $385 billion at the end of last year, and Mubadala Capital previously signed a $1 billion private credit partnership with Fortress.
- • Mubadala Capital will continue to operate independently and maintain its own governance structure after the deal closes, expected in the fourth quarter.
Summary
Apollo Global Management will acquire a minority stake in Mubadala Capital and commit capital across its investment strategies, Mubadala Capital said in a statement on Monday, according to Reuters. The deal deepens a relationship between the US alternative asset manager and the Abu Dhabi wealth fund's asset management arm. Apollo declined to comment on the size of its stake, though a person familiar with the matter told Reuters it is nearly 10%.
Mubadala Capital said the US investment group is expected to commit an aggregate $5 billion to its investment strategies together with other strategic investors, who will also join as minority shareholders. The firm said Apollo's investment will help it broaden its investor base, expand its strategies, and pursue new opportunities globally. Mubadala Capital added that it will continue to operate independently and maintain its own governance structure once the transaction is completed.
John Zito, co-president of Apollo Asset Management, described Mubadala as a trusted partner in seeding and scaling a number of Apollo's strategies over the years. He said the investment builds on the existing partnership and reflects Apollo's conviction in the business Mubadala Capital has built. Goldman Sachs and Jefferies advised Mubadala Capital, while Morgan Stanley acted as financial advisor to Apollo. The transaction is expected to close in the fourth quarter.
The transaction comes as global investment firms have expanded their presence in the Gulf region, drawn by proximity to large sovereign wealth funds. Wealth funds in Abu Dhabi together manage an estimated $1.8 trillion, according to Reuters. Mubadala, with $385 billion in assets under management at the end of last year, is among funds increasing exposure to alternative investments. Last year, Mubadala Capital entered a $1 billion strategic partnership with New York-based Fortress to invest in private credit, following earlier partnerships with Goldman Sachs and Apollo.
Mubadala Capital said the US investment group is expected to commit an aggregate $5 billion to its investment strategies together with other strategic investors, who will also join as minority shareholders. The firm said Apollo's investment will help it broaden its investor base, expand its strategies, and pursue new opportunities globally. Mubadala Capital added that it will continue to operate independently and maintain its own governance structure once the transaction is completed.
John Zito, co-president of Apollo Asset Management, described Mubadala as a trusted partner in seeding and scaling a number of Apollo's strategies over the years. He said the investment builds on the existing partnership and reflects Apollo's conviction in the business Mubadala Capital has built. Goldman Sachs and Jefferies advised Mubadala Capital, while Morgan Stanley acted as financial advisor to Apollo. The transaction is expected to close in the fourth quarter.
The transaction comes as global investment firms have expanded their presence in the Gulf region, drawn by proximity to large sovereign wealth funds. Wealth funds in Abu Dhabi together manage an estimated $1.8 trillion, according to Reuters. Mubadala, with $385 billion in assets under management at the end of last year, is among funds increasing exposure to alternative investments. Last year, Mubadala Capital entered a $1 billion strategic partnership with New York-based Fortress to invest in private credit, following earlier partnerships with Goldman Sachs and Apollo.
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