Apollo Global Management is taking a stake in Mubadala Capital, the alternative-asset management arm of the Abu Dhabi sovereign wealth fund Mubadala, and will put additional capital into its investment strategies, deepening the US firm’s ties with one of the Middle East’s most prolific investors.
Apollo, alongside others, will take a minority stake in Mubadala Capital and commit $5 billion across its investment strategies. Apollo joins Silver Rock as a backer of the firm, which has increasingly been attracting more outside investors to fund its deal flow.
The deal highlights the continuing allure of Abu Dhabi wealth for Wall Street’s biggest investors despite the Iran war. The self-styled “capital of capital” is home to sovereign wealth funds controlling $1.8 trillion, including Mubadala, which is the world’s most active state-controlled investor. It’s also increasingly being trusted by external funds wanting to partner with Abu Dhabi firms as they embark on a dealmaking spree from AI to private credit.
Since its launch 15 years ago, Mubadala Capital has become the first sovereign fund to take in third-party capital, and now manages around $60 billion in its core alternatives business. It raised a $554 million fund in January for co-investment alongside it, its $385 billion parent company, or other global private equity firms.
“Apollo has been a trusted partner to Mubadala and to Abu Dhabi for many years, and this investment builds on that relationship,” a spokesperson for Mubadala Capital told Semafor. “It supports our next phase of growth, helping us broaden our investor base, expand our strategies and pursue new opportunities globally.”