Apollo Nears Deal for 10% Stake in Mubadala Capital, CNBC Reports

Apollo Global Management (NYSE:APO) is finalizing an agreement to acquire a minority stake of approximately 10% in Mubadala Capital, the asset management subsidiary of Abu Dhabi's sovereign wealth fund, according to a CNBC report citing people familiar with the matter. The transaction, which could be announced as early as Monday, marks a significant step in the strategic alliance between the two financial institutions.

Deepening Strategic Ties

The reported investment builds on a series of expanding commercial relationships between Apollo and Mubadala. This partnership has grown significantly in recent years, evolving from transactional collaborations to a more integrated alliance.

• In 2022, the firms established a multi-billion dollar partnership to source debt and equity transactions.
• This was followed in 2023 by the launch of a $2.5 billion joint venture focused on global private credit opportunities over a five-year period.

For Apollo, the deal solidifies its operational presence in the United Arab Emirates, a growing financial hub where the firm has spent 15 years cultivating relationships. For Mubadala Capital, the investment provides institutional scale to support its global growth strategy under CEO Hani Barhoush.

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A Shifting Investment Landscape

This transaction highlights a key evolution in the relationship between major Western private equity firms and sovereign investors in the Gulf. Rather than viewing the region solely as a source of capital for outbound investments, Apollo is making a direct inbound investment into Abu Dhabi's asset management infrastructure.

Mubadala Capital is the specialized alternative asset management arm of Mubadala Investment Company. The CNBC report noted that the deal's momentum was partly driven by the collaborative relationship between Barhoush and John Zito, co-president of Apollo's asset management business, as both firms seek to leverage scale in a competitive global market.