Apollo Global Management is finalizing a deal to acquire close to 10% of Mubadala Capital, the alternative asset manager subsidiary of Abu Dhabi's sovereign wealth fund, Mubadala Investment Co., according to people familiar with the matter who asked not to be named.
Those sources said an announcement was expected later on Monday morning. Financial terms of the transaction were not immediately known.
The agreement builds on a relationship Apollo has spent about 15 years developing in Abu Dhabi, a city often described as the "capital of capital." The firm has cultivated strategic ties with both the country's investment arm and its core leadership, and the new deal advances its ambitions in the emirate.
Apollo and Mubadala Investment Co. already share a multibillion-dollar partnership, first set up in 2022 and extended two years ago. When it was extended, Apollo said the arrangement would strengthen its Capital Solutions platform by allowing the two sides to jointly source and provide customized debt and equity financing to companies around the world. In 2023, the institutions also created a $2.5 billion joint venture to co-invest in global private credit opportunities over five years.
For Mubadala Capital, described as the region's only large-scale asset manager, the deal supports a growth strategy led by CEO Hani Barhoush and raises its profile on the global investing stage. The firm advises and administers more than $755 billion in assets. The transaction also marks an inflection point for its core alternatives business, which has grown to more than $60 billion.
John Zito, co-president of Apollo's Asset Management arm, and Barhoush have worked closely for several years. According to sources, that relationship and the success of earlier partnerships led to discussions about deepening ties, as did a belief that scale matters more than ever in asset management. "Capital as a moat is a big thing," said one person familiar with the deal.
The transaction also reflects a notable shift in how American investment firms and the Middle East interact. The region, and Abu Dhabi in particular, has long been a sought-after source of capital. This deal further reverses that dynamic, with Apollo making a significant direct investment in the country and its investment vision.
Mubadala Capital has international offices in London, New York, Rio de Janeiro and San Francisco. Apollo's stake is similar to investments the firm has made in other asset management platforms, including Diameter Capital, Thoreau and Motive Partners, among others.
Spokespersons for both firms declined to comment.
