Apollo Partners with Abu Dhabi-Based Mubadala Capital

Apollo Global Management (APO) has entered talks with Mubadala Capital, operating under Abu Dhabi sovereign wealth fund Mubadala Investment Company, to acquire an approximately 10% stake. According to information provided by sources close to the matter, the transaction, which has reached its final stage, is expected to become official on Monday, while the financial terms of the deal have not yet been disclosed. With the agreement, global alternative asset manager Mubadala Capital joins the direct equity partners of the US-based fund.

Which areas does the Apollo-Mubadala partnership cover?

Collaboration between the 2 institutions does not date to a recent period; Apollo has been strengthening its institutional and strategic ties in Abu Dhabi for the past 15 years. The parties established a multi-billion-dollar partnership in 2022, and the agreement in question was expanded 2 years ago. This collaboration aimed to provide customized debt and equity financing to companies by supporting Apollo's capital solutions platform. In 2023, the institutions launched a $2.5 billion joint venture to invest in global private credit opportunities over a 5-year term.

How is the balance shifting between Gulf capital and US funds?

Positioned as the region's only large-scale asset manager, Mubadala Capital advises and manages over $755 billion in assets. Under the leadership of Managing Director Hani Barhoush, the company's core alternative investments have exceeded $60 billion. While the operational collaboration between Apollo Asset Management Co-President John Zito and Barhoush laid the groundwork for this partnership, it is noted that scale of capital has become a protective element of strength in the sector. This move regarding Mubadala Capital, which has offices in London, New York, Rio de Janeiro, and San Francisco, reverses the approach of American funds viewing the Gulf merely as a source of funding, highlighting direct capital deployment into the region.

The stake acquisition, whose financial scale will become clear with the official announcement, bears similarities to minority stake investments Apollo previously made with asset management platforms such as Diameter Capital, Thoreau, and Motive Partners. The deal aims to take Apollo's Gulf vision and private credit portfolio beyond existing partnerships.

This content is for information purposes only and does not constitute investment advice.