Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Mubadala, the Abu Dhabi-based sovereign investor, and Fortress Investment Group, a global investment manager, on Thursday announced the signing of a $1 billion strategic partnership to capitalise on opportunities in private credit space.
A joint statement said that Mubadala will deploy $1 billion in a range of Fortress’s existing private credit, asset-based lending and real estate strategies.
In recent times, it has become increasingly difficult and expensive for corporations to secure funding from traditional lending institutions due to stricter conditions. This environment has given rise to private lending as a significant investment area, with wealth management funds seeking improved returns.
Mubadala, through its asset management company Mubadala Capital, already holds a significant stake in Fortress.
“This strategic partnership with Fortress builds upon our existing shareholding and underscores the strength and depth of the relationship between our two institutions,” said Omar Eraiqaat, Deputy CEO of Credit and Special Situations at Mubadala. “Private credit continues to play an increasingly vital role in global capital markets, offering attractive risk-adjusted returns. This partnership leverages the complementary strengths of both Mubadala and Fortress.”
Fabrizio Bocciardi, Head of Credit Investments at Mubadala, added: "We look forward to continuing to work with the Fortress team to realise the significant benefits of this partnership. As both a significant Fortress shareholder and a long-term investor in private debt, this partnership with Fortress is a win-win."
“This partnership builds on our strong relationship with Mubadala and allows them to invest in a range of our core strategies,” added Drew McKnight, Co-CEO of Fortress.
Josh Pack, Co-CEO of Fortress, added: “Across more than 25 years of being a pioneer and innovator in private capital, we’ve consistently delivered best-in-class returns and solutions to our limited partners. This partnership with Mubadala will allow us to bring more scale to our franchise, with additional capital.”
In May 2024, Fortress, Mubadala, and Mubadala Capital announced the completion of the acquisition of 90.01% of the equity of Fortress. At close, Fortress management owned a 32% equity interest in the company in a class of equity entitling Fortress management to appoint a majority of seats on the board; a consortium led by Mubadala Capital, Mubadala’s asset management subsidiary, owned 68% of Fortress equity.
Direct corporate credit and asset-based financing have been at the core of Fortress’s offering for more than two decades, with more than $100 billion deployed across thousands of transactions, the statement said.
In recent times, Abu Dhabi-based sovereign wealth has been playing a growing role on the global stage. According to the Sovereign Wealth Fund Institute (SWFI), Abu Dhabi funds were responsible for six of the top 11 global sovereign fund transactions in 2024. Of these, three were executed by Mubadala, two by the Abu Dhabi Investment Authority (ADIA), and one by the Abu Dhabi Developmental Holding Company (ADQ), SWFI said.
