Apollo Global Management to Buy Nearly 10% Stake in Mubadala Capital
Published on · Source: cnbc.com
AI Summary
Summarized by AI from the source belowApollo Global Management is finalizing a deal to acquire nearly a 10% stake in Mubadala Capital, the alternative asset management subsidiary of Abu Dhabi's sovereign wealth fund, Mubadala Investment Company. The transaction is expected to be announced soon, though financial terms have not been disclosed.
This investment builds on Apollo's long-standing relationship with Mubadala, including a multibillion-dollar partnership established in 2022 and a $2.5 billion joint venture formed in 2023 targeting global private credit opportunities. Mubadala Capital manages over $755 billion in assets with a core alternatives business exceeding $60 billion. The deal is part of Mubadala Capital's growth strategy under CEO Hani Barhoush and strengthens Apollo's presence in Abu Dhabi's investment landscape.
The deal is notable for reversing the usual capital flow dynamic, with Apollo making a direct investment in the Middle East. This move highlights the growing importance of scale in asset management and further solidifies strategic ties between Apollo and Mubadala. For investors, this transaction underscores Apollo's ambition to deepen its exposure to global alternatives and leverage Mubadala Capital's expanding platform.
Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.
Our take
Opinion from the Newsstocks AI desk, not investment adviceWe think this deal strengthens Apollo's presence in the Middle East and boosts its alternative asset management footprint. The growth in Mubadala Capital's alternatives business supports Apollo's strategy. This view would change if financial terms reveal unusual risk or if Mubadala's growth slows.
Key numbers
- Stake to be acquired
- nearly a 10%
- Mubadala Capital assets under management
- $755 billion
- Mubadala Capital core alternatives business
- more than $60 billion
- Joint venture capital
- $2.5 billion
What could help
- Deepens Apollo's strategic partnership with a major sovereign wealth fund.
- Expands Apollo's access to Mubadala Capital's $755 billion asset portfolio.
What to watch next
The announcement of the deal expected later Monday morning.
The background
A stake purchase means one company buys part ownership in another to strengthen strategic ties. Asset managers raise capital to expand investments and global reach.
Questions readers ask
What stake is Apollo Global Management acquiring in Mubadala Capital?
Apollo is acquiring nearly a 10% stake in Mubadala Capital.
How large is Mubadala Capital's asset base?
Mubadala Capital manages over $755 billion in assets.
What prior partnerships exist between Apollo and Mubadala Investment Company?
They have a multibillion-dollar partnership established in 2022 and a $2.5 billion joint venture from 2023 focused on private credit.
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