Key Takeaways
- • Apollo Global Management is finalizing a deal to acquire nearly a 10% stake in Mubadala Capital, according to Traders Union, citing CNBC's earlier reporting; financial terms have not been disclosed.
- • The transaction is expected to be announced later on Monday, deepening Apollo's presence in Abu Dhabi's alternative investment market.
- • Apollo and Mubadala Investment Company have a multibillion-dollar partnership dating to 2022, extended in 2024, including a $2.5 billion five-year private credit joint venture formed in 2023.
- • Mubadala Capital oversees more than $755 billion in assets, with an alternatives business above $60 billion, and offices in London, New York, Rio de Janeiro and San Francisco.
Summary
Apollo Global Management is finalizing the acquisition of nearly a 10% stake in Mubadala Capital, the alternative asset management unit of Abu Dhabi sovereign wealth fund Mubadala Investment Company. As first reported by CNBC and carried by Traders Union, the transaction is expected to be announced later on Monday, though financial terms have not been disclosed.
People familiar with the matter told CNBC that the proposed investment builds on a relationship Apollo has cultivated in the emirate for roughly 15 years, through ties with state investment institutions and senior leadership. The deal would deepen the U.S. firm's presence in Abu Dhabi's fast-growing alternative investment market.
The transaction expands an existing partnership. Apollo and Mubadala Investment Company first established a multibillion-dollar partnership in 2022, which was extended two years later to strengthen Apollo's Capital Solutions platform by allowing the firms to jointly source and provide customized debt and equity financing globally. In 2023, the two institutions also formed a $2.5 billion joint venture to co-invest in global private credit over five years. Coverage cites close cooperation between Apollo Asset Management co-president John Zito and Mubadala Capital CEO Hani Barhoush as a factor in the broader ties.
Mubadala Capital advises and administers more than $755 billion in assets and is described as the region's only large-scale asset manager. Its alternatives business has grown to more than $60 billion, and the firm aims to expand that business and reinforce Abu Dhabi as a global financial hub. The firm's international footprint includes offices in London, New York, Rio de Janeiro and San Francisco. For Apollo, the investment signals that Abu Dhabi is becoming more than a source of capital, with U.S. firms increasingly committing money directly into Middle Eastern investment platforms.
People familiar with the matter told CNBC that the proposed investment builds on a relationship Apollo has cultivated in the emirate for roughly 15 years, through ties with state investment institutions and senior leadership. The deal would deepen the U.S. firm's presence in Abu Dhabi's fast-growing alternative investment market.
The transaction expands an existing partnership. Apollo and Mubadala Investment Company first established a multibillion-dollar partnership in 2022, which was extended two years later to strengthen Apollo's Capital Solutions platform by allowing the firms to jointly source and provide customized debt and equity financing globally. In 2023, the two institutions also formed a $2.5 billion joint venture to co-invest in global private credit over five years. Coverage cites close cooperation between Apollo Asset Management co-president John Zito and Mubadala Capital CEO Hani Barhoush as a factor in the broader ties.
Mubadala Capital advises and administers more than $755 billion in assets and is described as the region's only large-scale asset manager. Its alternatives business has grown to more than $60 billion, and the firm aims to expand that business and reinforce Abu Dhabi as a global financial hub. The firm's international footprint includes offices in London, New York, Rio de Janeiro and San Francisco. For Apollo, the investment signals that Abu Dhabi is becoming more than a source of capital, with U.S. firms increasingly committing money directly into Middle Eastern investment platforms.
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