Apollo takes minority stake in Mubadala Capital

Apollo Global Management has agreed to take a minority equity stake in Mubadala Capital, the alternative asset management arm of Abu Dhabi sovereign investor Mubadala Investment Company. The Apollo Mubadala Capital stake is part of a wider deal bringing in several strategic investors.

What happened

Apollo is one of several strategic investors joining Mubadala Capital's shareholder register. Together, the new minority shareholders are expected to commit a combined $5bn to Mubadala Capital's strategies at initial close.

Apollo will sit alongside the founders of Silver Rock Financial as an equity holder in Mubadala Capital.

"Mubadala has been a trusted partner in seeding and scaling a number of our strategies over the years," said John Zito, co-president of Apollo Asset Management.

Why it matters

The investment deepens a long-standing relationship between the two groups. Mubadala has helped seed and scale several of Apollo's own strategies, so the new equity link adds an ownership tie to an existing commercial one.

For private equity and wider alternatives, the transaction shows a sovereign-backed manager in Abu Dhabi, in the United Arab Emirates, opening its capital to outside strategic shareholders while pairing that with fresh commitments to its strategies.

What the $5bn commitment signals

The combined $5bn is described as expected at initial close, so it is a commitment to Mubadala Capital's strategies rather than a purchase price for the stakes.

What to watch next

• The identity of the other strategic investors and the size of each stake.
• Whether the initial close takes place as expected and how the $5bn is allocated across strategies.
• How the partnership with Apollo develops in seeding and scaling new strategies.
• Any further disclosure on governance and the shareholder structure of Mubadala Capital.