Investing giant Apollo Global Management is finalizing an agreement to acquire a nearly 10% ownership stake in Mubadala Capital, the prominent alternative asset manager operating as a subsidiary of Abu Dhabi’s sovereign wealth fund, the Mubadala Investment Company. According to people familiar with the matter who spoke on condition of anonymity because the discussions are private, the landmark transaction is expected to be officially announced later Monday morning. Financial terms of the transaction were not immediately disclosed by either institution.
The impending deal carries significant weight across multiple financial and geopolitical fronts. Beyond the immediate economic investment, the transaction further accelerates Apollo’s long-term strategic ambitions within Abu Dhabi, a financial hub increasingly referred to by industry insiders as the "capital of capital." Over the past decade and a half, Apollo has systematically cultivated vital strategic relationships within the region, forging deep ties with both the country’s primary investment apparatus and its core leadership circles.
This latest move builds upon an already robust, multibillion-dollar partnership between Apollo and the Mubadala Investment Company. That relationship was initially established in 2022 and subsequently extended two years ago. At the time of the partnership’s extension, executives at Apollo noted that the formal agreement was designed to strengthen the firm’s Capital Solutions platform. The collaboration allows both institutional powerhouses to jointly source and provide customized debt and equity financing structures to companies operating on a global scale.
The partnership deepened further in 2023, when the two institutions formally established a $2.5 billion joint venture. This specific vehicle was created to co-invest directly in global private credit opportunities over an anticipated five-year horizon, underscoring the growing alignment between Apollo’s private credit prowess and Abu Dhabi’s vast sovereign capital deployment strategies.
For Mubadala Capital specifically, the transaction represents a major milestone. As the region’s premier large-scale asset manager, the firm currently advises, manages, and administers more than $755 billion in assets. The new investment from Apollo is expected to further catalyze the organization’s broader growth strategy under the experienced direction of CEO Hani Barhoush, elevating its stature and relevance on the hyper-competitive global investing stage. Furthermore, the partnership marks an important inflection point for the company’s core alternatives business, which has expanded rapidly in recent years to encompass more than $60 billion in assets under management.
The groundwork for this equity acquisition was laid over several years through professional alignment and shared strategic vision. John Zito, the co-president of Apollo’s Asset Management arm, and Barhoush have worked closely together on numerous initiatives. According to sources close to the situation, their close-knit working relationship and the proven success of prior joint partnerships naturally catalyzed discussions regarding deepening institutional ties. Both leaders share a fundamental belief that scale within the modern asset management industry matters more than ever before as markets consolidate and large-scale deployment becomes a decisive competitive advantage.
"Capital as a moat is a big thing," remarked one person familiar with the deal dynamics, summarizing the prevailing philosophy driving the consolidation of alternative asset management resources.
Crucially, the transaction also highlights a notable evolutionary shift in the structural relationship between Wall Street investment firms and Middle Eastern financial institutions. Historically, the region—and Abu Dhabi in particular—has functioned primarily as a highly sought-after source of passive or LP capital for American funds. However, transactions of this nature actively reverse that traditional dynamic. By acquiring a direct equity stake in a premier regional asset manager, Apollo is making a substantial direct financial and operational commitment to the country and its long-term economic investment vision.
Mubadala Capital maintains a robust global footprint to support its investment activities, operating international offices in major financial centers including London, New York, Rio de Janeiro, and San Francisco. This global reach complements Apollo’s expansive worldwide network, creating operational synergies that span multiple continents and asset classes.
Apollo’s investment strategy regarding Mubadala Capital follows a playbook similar to equity and strategic transactions the firm has executed with other specialized asset management platforms. In the past, Apollo has taken stakes in or formed targeted partnerships with firms such as Diameter Capital, Thoreau, and Motive Partners, among others, systematically expanding its ecosystem of affiliated asset managers and extending its market reach.
Spokespersons for both Apollo Global Management and Mubadala Capital declined to comment on the pending transaction as final details were being wrapped up ahead of the official announcement.
