- Apollo Global Management is finalizing a deal to buy a nearly 10% stake in Mubadala Capital, the alternative asset management subsidiary of Abu Dhabi sovereign investor Mubadala Investment Co., people familiar with the matter told CNBC. The deal was expected to be announced Monday, and financial terms were not immediately known.
- Mubadala Capital says it manages, advises and administers more than $755 billion, while its wholly owned core alternatives businesses manage and invest more than $60 billion. CNBC describes it as the region’s only large-scale asset manager.
- The stake builds on an existing multibillion-dollar partnership between Apollo and Mubadala Investment Co. first set up in 2022 and extended two years ago, plus a $2.5 billion joint venture formed in 2023 to co-invest in global private credit over five years.
- The deal reverses the usual flow between U.S. investment firms and the Gulf, with Apollo putting its own capital into Abu Dhabi rather than only raising money there. It is similar to Apollo’s stakes in other managers such as Diameter Capital, Thoreau and Motive Partners.
What Happened?
Apollo is finalizing a deal to buy nearly 10% of Mubadala Capital, according to people familiar with the matter who spoke to CNBC on condition of anonymity. Mubadala Capital is the alternative asset management arm of Mubadala Investment Co., Abu Dhabi’s sovereign investor, and is run by CEO Hani Barhoush. John Zito, co-president of Apollo’s asset management arm, and Barhoush have worked closely together over the past several years, and sources said their relationship and the success of earlier partnerships led to talks of deeper ties. Apollo has spent the past 15 years building strategic relationships in Abu Dhabi. Spokespersons for both firms declined to comment.
Why It Matters?
The deal shows how the biggest alternative asset managers are using minority stakes in other platforms to gain scale and access to capital, a strategy Apollo has repeated with several managers. One person familiar with the deal summed up the logic as “capital as a moat,” reflecting the view that scale matters more than ever in asset management. A direct equity link with a sovereign-backed manager could give Apollo a deeper channel to Gulf capital for its private credit and Capital Solutions businesses. For Mubadala Capital, a U.S. partner of Apollo’s size adds global relevance as its core alternatives business passes $60 billion.
What’s Next?
Investors will watch for the formal announcement and any disclosure of the price Apollo is paying, which would put a value on Mubadala Capital. Watch also for new joint products or co-investment vehicles, building on the 2023 private credit venture. Other large U.S. managers may look for similar stakes in Gulf platforms as competition for sovereign capital grows. Apollo’s next earnings call is a likely place for management to explain how the stake fits its asset management growth targets.
Affected Tickers and Coins: APO
Source: CNBC
