Apollo Global Management Inc. is acquiring a minority equity stake in Mubadala Capital, the alternative asset management arm of the $385 billion Abu Dhabi sovereign wealth fund, deepening its presence in the oil-rich emirate. The US firm will also commit capital across Mubadala Capital’s investment strategies, though financial terms and the exact size of the stake were not disclosed. A source familiar with the matter said the holding would amount to nearly 10%. As part of the deal, additional strategic investors will become minority shareholders and, together with Apollo, are expected to commit a combined $5 billion to Mubadala Capital’s strategies at the initial close.
Apollo and Mubadala already share deep ties, including a multibillion-dollar partnership focused on global origination opportunities. “This investment in the differentiated asset management platform they have built in Mubadala Capital builds on our existing partnership and reflects our conviction in their business,” said Apollo Co-President John Zito.
The transaction marks only the third instance of Mubadala Capital agreeing to sell a stake to outside investors. Last year, Mark Walter’s TWG Global agreed to take a stake, but that deal was held up by a US Department of Justice probe into Walter’s business, with no money having changed hands so far.
With $385 billion in assets under management, Mubadala is one of the Middle East’s largest sovereign wealth funds. Mubadala Capital, established in 2011, manages, advises and administers over $755 billion in assets for clients and limited partners.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing