Apollo Global Management Set to Acquire Nearly 10% Stake in Mubadala Capital

Apollo Global Management is finalizing a deal to purchase a stake of nearly 10% in Mubadala Capital, the alternative asset management subsidiary of Abu Dhabi sovereign wealth fund Mubadala Investment Co., according to individuals familiar with the matter who spoke on condition of anonymity.

The transaction is expected to be announced later Monday morning, these individuals said. Financial terms were not immediately disclosed.

The deal is significant for several reasons. It further advances Apollo’s ambitions in Abu Dhabi, often described as the “capital of capital.” Over the past 15 years, the firm has built key strategic relationships in the emirate with both the national investment apparatus and its central leadership.

Apollo already maintains a multibillion-dollar partnership with Mubadala Investment Co., originally established in 2022 and extended two years ago. At the time of that extension, Apollo said the agreement would bolster its Capital Solutions platform by enabling both firms to jointly source and provide customized debt and equity financing to companies worldwide.

In 2023, the institutions formed a $2.5 billion joint venture specifically intended to co-invest in global private credit opportunities over a five-year horizon.

For Mubadala Capital—the region’s only large-scale asset manager, advising and administering more than $755 billion in assets—the deal advances its growth strategy under CEO Hani Barhoush and strengthens its relevance on the global investing stage. It also marks an inflection point for the company’s core alternatives business, which has grown to more than $60 billion.

Apollo Global Management, YTD

John Zito, co-president of Apollo’s Asset Management arm, and Barhoush have worked closely together over the past several years. According to sources, their close relationship and the success of prior partnerships led to discussions about deepening ties. So did the belief that scale in the asset management business matters more than ever.

“Capital as a moat is a big thing,” said one person familiar with the deal.

Importantly, the deal continues a notable shift in the relationship between American investment firms and the Middle East. While the region, and Abu Dhabi specifically, has long been a sought-after source of capital, this transaction further reverses that dynamic, with Apollo making a significant direct investment in the country and its investment vision.

Mubadala Capital’s international offices include London, New York, Rio de Janeiro and San Francisco.

Apollo’s investment in Mubadala Capital is similar to deals the firm has completed with other asset management platforms, including Diameter Capital, Thoreau, Motive Partners and others.

Spokespersons for both firms declined to comment.

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