Mubadala Investment Company, a global sovereign investor, and Fortress Investment Group, a global investment manager, have signed a $1 billion strategic partnership focused on private credit and special situations co-investment opportunities.
The investment partnership seeks to deploy $1 billion from Mubadala in a range of Fortress’s existing private credit, asset-based lending and real estate strategies alongside Fortress’s existing pools of capital. Mubadala, through its asset management subsidiary Mubadala Capital, holds a significant stake in Fortress.
Omar Eraiqaat Deputy CEO Credit and Special Situations, Mubadala
“This strategic partnership with Fortress builds upon our existing shareholding and underscores the strength and depth of the relationship between our two institutions. Private credit continues to play an increasingly vital role in global capital markets, offering attractive risk-adjusted returns and providing flexible financing solutions for businesses. This partnership leverages the complementary strengths of both Mubadala and Fortress, providing access to a diverse range of credit and real estate strategies.”
“This Partnership builds on our strong relationship with Mubadala and allows them to invest in a range of our core strategies. In conversations with our partners, we increasingly hear that they want tailored and scalable investment solutions that can enhance returns across the credit spectrum. At the same time, we’re seeking to expand borrowers’ access to capital by securing larger and more diverse pools of capital from investors. We’re pleased to be able to deliver on both those objectives through this Partnership with Mubadala,” stated Drew McKnight, Co-CEO of Fortress.
In May 2024, Fortress, Mubadala, and Mubadala Capital announced the completion of the acquisition of 90.01 percent of the equity of Fortress. At close, Fortress management owned a 32 percent 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 percent of Fortress equity.
The Fortress investment is a testament to Mubadala Capital’s growth strategy as a global asset manager, which is predicated on developing long-term relationships with leading GPs, agreeing on a fair valuation for their business, aligning with management while empowering them to continue managing their firm with access to the Mubadala ecosystem through LP capital and fundraising support.
The company intends to continue executing this strategy in a number of new business lines and has established an internal team entirely focused on growing inorganically through strategic partnerships and acquisitions.
Fortress’s private credit, asset-based lending and real estate strategies combine sourcing, structuring and execution capabilities across the capital structure. 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, making Fortress one of the most experienced managers in the market today.
