Key Takeaways
- • Ares Management is partnering with Abu Dhabi Investment Council (ADIC) and Mubadala's Special Situations unit to launch a dedicated GP stakes business targeting minority positions in mid-market alternative asset managers across private equity, real estate, credit, infrastructure, and secondaries.
- • The partnership commits $15 billion-plus in capital, with initial deployment targeting approximately $1 billion as the platform scales, representing one of Mubadala's most significant commitments to U.S. alternative investment segments.
- • Ares will serve as investment manager and leverage its relationships with more than 1,000 general partners to identify investment opportunities in firms managing up to $30 billion in assets under management, with flexibility to deploy capital in larger managers.
- • The GP stakes strategy capitalizes on Ares' long-standing institutional relationships while providing Mubadala and ADIC with exposure to the fastest-growing segments of the U.S. economy through a structured minority stake acquisition model.
Summary
Ares Management has formalized a strategic partnership with Abu Dhabi Investment Council (ADIC) and Mubadala Investment Company's Special Situations unit to establish a new GP stakes investment platform. This joint venture represents a significant institutional capital deployment focused on acquiring minority positions in alternative asset managers across multiple sectors.
The partnership commits more than $15 billion in total capital to the initiative, marking one of Mubadala's largest strategic commitments to U.S. alternative investments. The platform will deploy approximately $1 billion initially as it establishes operations and identifies investment targets across its core focus areas: private equity, real estate, credit infrastructure, and secondaries managers.
Ares will assume the role of investment manager and will leverage its established relationships with more than 1,000 general partners to identify acquisition targets. The strategy targets mid-market managers with assets under management up to $30 billion, though the platform retains flexibility to scale investments to larger firms as opportunities arise. This positioning allows the partnership to access a broad spectrum of alternative asset managers while maintaining disciplined capital allocation.
The GP stakes model addresses a structural opportunity in the alternative asset management industry, where GPs increasingly seek minority capital partners to support growth, succession planning, and operational expansion. For Mubadala and ADIC, the partnership provides exposure to what sources characterize as the fastest-growing segments of the U.S. economy through a diversified, professionally managed platform with institutional-grade oversight and selection processes.
The partnership commits more than $15 billion in total capital to the initiative, marking one of Mubadala's largest strategic commitments to U.S. alternative investments. The platform will deploy approximately $1 billion initially as it establishes operations and identifies investment targets across its core focus areas: private equity, real estate, credit infrastructure, and secondaries managers.
Ares will assume the role of investment manager and will leverage its established relationships with more than 1,000 general partners to identify acquisition targets. The strategy targets mid-market managers with assets under management up to $30 billion, though the platform retains flexibility to scale investments to larger firms as opportunities arise. This positioning allows the partnership to access a broad spectrum of alternative asset managers while maintaining disciplined capital allocation.
The GP stakes model addresses a structural opportunity in the alternative asset management industry, where GPs increasingly seek minority capital partners to support growth, succession planning, and operational expansion. For Mubadala and ADIC, the partnership provides exposure to what sources characterize as the fastest-growing segments of the U.S. economy through a diversified, professionally managed platform with institutional-grade oversight and selection processes.
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