Key Takeaways
- • Apollo Global Management is acquiring a minority stake in Abu Dhabi's Mubadala Capital, with the deal expected to close by the end of 2026, marking a shift from passive sovereign investment toward strategic partnership.
- • Mubadala Capital advises and administers more than $755 billion for clients and limited partners; parent Mubadala Investment Company will retain majority ownership after the transaction.
- • Apollo, which manages more than $1 trillion, is also paying more than $1 billion for roughly 10 percent of Los Angeles-based Silver Rock Financial, according to CEO Marc Rowan.
- • Industry observers expect the two firms to compete for the same deals and limited partners, but say equity alignment creates incentives to collaborate on the largest opportunities.
- • Rowan forecasts the Gulf will spend $1 trillion on infrastructure and trade-route diversification in the wake of the Iran war.
Summary
Alternative asset manager Apollo Global Management's acquisition of a minority stake in Abu Dhabi's state-owned Mubadala Capital illustrates how major Wall Street firms have moved from raising capital from Gulf sovereign investors to forming long-term strategic partnerships with them. The deal is expected to close by the end of the year and will support Mubadala Capital's global expansion while deepening Apollo's relationships in the UAE and wider Gulf region. Mubadala Capital, founded in 2011, advises and administers more than $755 billion for clients and limited partners. Its parent, Mubadala Investment Company, will retain majority ownership.
Winston Ma, executive director of New York University's Global Public Investment Funds Forum, described the shift in investment models. Under the traditional sovereign wealth fund approach, Gulf funds bought passive stakes in US managers, citing the Abu Dhabi Investment Authority's 9 percent purchase of Apollo and Mubadala's 7.5 percent stake in Carlyle in 2007. "Today, the script has flipped," Ma said. "Middle East SWFs are setting up their own asset management arms, for which the Wall Street powerhouses are acting as partners of long-term capital." He described the resulting competition between the two firms as "healthy tension," noting that they will compete for some of the same deals and limited partners while equity alignment encourages collaboration on the largest opportunities.
Separately, Apollo will join the founders of Los Angeles-based Silver Rock Financial as a minority shareholder, paying more than $1 billion for approximately 10 percent of the firm, according to Apollo CEO Marc Rowan in an interview with The National. Apollo, founded in 1990, manages more than $1 trillion and has several UAE partnerships. Following the Mubadala Capital announcement, Emirati wealth fund Adic backed the launch of Apollo's $11 billion European Credit Company. Apollo has also invested nearly $3 billion in UAE developer Aldar Properties over five years and has an existing multibillion-dollar joint venture with Mubadala Investment Company.
Robert Mogielnicki, founder of Paris-based Polisphere Advisory, said these moves align Wall Street firms with Gulf investment vehicles expected to remain influential, and that such partnerships may reduce risk in joint investments amid heightened geopolitical and macroeconomic uncertainty. Rowan described the industry as "incredibly competitive" but not a "zero-sum game," and said the Gulf will spend $1 trillion on strengthening infrastructure and diversifying trade routes after the Iran war. Mubadala Capital and Mubadala Investment Company declined to comment, and Apollo did not respond to requests for comment.
Winston Ma, executive director of New York University's Global Public Investment Funds Forum, described the shift in investment models. Under the traditional sovereign wealth fund approach, Gulf funds bought passive stakes in US managers, citing the Abu Dhabi Investment Authority's 9 percent purchase of Apollo and Mubadala's 7.5 percent stake in Carlyle in 2007. "Today, the script has flipped," Ma said. "Middle East SWFs are setting up their own asset management arms, for which the Wall Street powerhouses are acting as partners of long-term capital." He described the resulting competition between the two firms as "healthy tension," noting that they will compete for some of the same deals and limited partners while equity alignment encourages collaboration on the largest opportunities.
Separately, Apollo will join the founders of Los Angeles-based Silver Rock Financial as a minority shareholder, paying more than $1 billion for approximately 10 percent of the firm, according to Apollo CEO Marc Rowan in an interview with The National. Apollo, founded in 1990, manages more than $1 trillion and has several UAE partnerships. Following the Mubadala Capital announcement, Emirati wealth fund Adic backed the launch of Apollo's $11 billion European Credit Company. Apollo has also invested nearly $3 billion in UAE developer Aldar Properties over five years and has an existing multibillion-dollar joint venture with Mubadala Investment Company.
Robert Mogielnicki, founder of Paris-based Polisphere Advisory, said these moves align Wall Street firms with Gulf investment vehicles expected to remain influential, and that such partnerships may reduce risk in joint investments amid heightened geopolitical and macroeconomic uncertainty. Rowan described the industry as "incredibly competitive" but not a "zero-sum game," and said the Gulf will spend $1 trillion on strengthening infrastructure and diversifying trade routes after the Iran war. Mubadala Capital and Mubadala Investment Company declined to comment, and Apollo did not respond to requests for comment.
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