Apollo 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 [1]. Mubadala Capital manages, advises and administers more than $755 billion in assets, with its wholly owned core alternatives businesses managing and investing more than $60 billion [1]. The deal was expected to be announced Monday morning, though financial terms were not immediately disclosed [1].
This transaction represents a significant strategic expansion for Apollo in Abu Dhabi, which the firm has been cultivating over the past 15 years through key relationships with both the country's investment arm and its leadership [1]. Apollo already maintains a multibillion-dollar partnership with Mubadala Investment Company, first established in 2022 and extended two years prior to this announcement [1]. In 2023, the two institutions formed a $2.5 billion joint venture specifically designed to co-invest in global private credit opportunities over a five-year horizon [1].
The deepening partnership reflects the close working relationship between John Zito, co-president of Apollo's Asset Management arm, and Hani Barhoush, CEO of Mubadala Capital, whose collaboration over several years and success in prior partnerships led to discussions of expanding ties [1]. According to sources, the belief that "scale in the asset management business matters more than ever" and that "capital as a moat is a big thing" drove the transaction [1]. The deal also signals a notable shift in Middle East dynamics, with American investment firms increasingly making significant direct investments in the region, reversing the traditional dynamic where the Middle East has primarily served as a source of capital [1].
CONCLUSION
Apollo's acquisition of a nearly 10% stake in Mubadala Capital marks a strategic inflection point for both firms, deepening their existing multibillion-dollar partnership and positioning Apollo for greater scale in global alternative asset management. The transaction reflects a broader shift in U.S.-Middle East investment dynamics, with American firms now making substantial direct investments in Abu Dhabi's asset management infrastructure rather than solely receiving capital from the region.