A stake by Apollo Global Management (Apollo) in Mubadala Capital could deepen ties between a U.S. asset manager and Abu Dhabi’s investment sector, CNBC reported, citing people familiar with the matter.
CNBC said Apollo was close to buying nearly 10% of Mubadala Capital, an alternative asset manager owned by Mubadala Investment Company, Abu Dhabi’s sovereign investor. The transaction had not been publicly announced at the time of the report, and its financial terms were unavailable. CNBC did not specify a price or how the stake would be structured.
Mubadala Capital says its advisory and administration work covers assets worth more than $755 billion. Its wholly owned core alternatives operations manage and invest more than $60 billion, the company says.
CNBC said the proposed transaction could support Mubadala Capital’s expansion and raise its profile among international investors. The outlet framed the deal as a shift in U.S.-Middle East financial ties: Middle Eastern funds have often supplied capital to U.S. companies, while the reported transaction would put an American firm in a direct investment position in Abu Dhabi.
People cited by CNBC linked the talks to the value of scale in asset management, the close working relationship between Apollo Asset Management co-president John Zito and Mubadala Capital CEO Hani Barhoush, and the results of earlier partnerships. CNBC also reported that Apollo had spent 15 years building strategic relationships in Abu Dhabi.
Apollo and Mubadala Investment Company formed a multibillion-dollar partnership in 2022 and extended it two years ago, CNBC reported. Apollo said the arrangement helps the firms identify companies worldwide for tailored debt or equity financing, CNBC reported. The outlet said spokespeople for both firms declined to comment. People familiar with the deal expected an announcement later Monday.
