By Federico Maccioni
DUBAI, Oct 26 (Reuters) – Apollo Global Management will acquire a minority stake in Mubadala Capital and commit capital across its investment strategies, the alternative asset management subsidiary of Abu Dhabi wealth fund Mubadala said on Monday.
The US investment group is expected to commit an aggregate $5 billion to Mubadala Capital’s investment strategies together with other strategic investors, which will join as minority shareholders, Mubadala Capital said in a statement. The deal deepens its ties with Mubadala.
Apollo will acquire a stake of nearly 10% in the subsidiary, a person familiar with the matter said.
Apollo declined to comment on the size of the stake.
“Apollo’s investment will help the firm broaden its investor base, expand its strategies, and pursue new opportunities globally,” Mubadala Capital said. It added that it will continue to operate independently and will maintain its own governance structure once the deal is completed.
In recent years, global investment companies have boosted their presence and ties with the Gulf region, attracted by proximity to some of the world’s largest sovereign wealth funds. Wealth funds in Abu Dhabi alone together manage an estimated $1.8 trillion.
Mubadala, which had assets under management of $385 billion at the end of last year, is among funds that have been increasing exposure to alternative investments.
Last year, Mubadala Capital entered into a $1 billion strategic partnership with New York-based investment firm Fortress to invest in private credit, following previous partnerships with Goldman Sachs and Apollo.
“Mubadala has been a trusted partner in seeding and scaling a number of our strategies over the years. 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,” John Zito, co-president of Apollo Asset Management, said in the statement.
Goldman Sachs and Jefferies advised Mubadala Capital, while Morgan Stanley acted as financial advisor to Apollo for the deal, which is expected to close in the fourth quarter.
(Reporting by Federico Maccioni; Editing by Susan Fenton and Emelia Sithole-Matarise)
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