Mubadala and Fortress Forge $1 Billion Credit Investment Alliance

Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, has committed $1 billion to a strategic partnership with U.S.-based Fortress Investment Group, aiming to capitalise on credit and special situations co-investment opportunities. This collaboration will see Mubadala deploying capital into Fortress’s existing private credit, asset-based lending, and real estate strategies, alongside Fortress’s current capital pools.

The partnership follows Mubadala Capital’s acquisition of a majority stake in Fortress in May 2024. Under the terms of that deal, Fortress management retained a 32% equity interest, granting them the authority to appoint a majority of the board seats. The remaining 68% is held by a consortium led by Mubadala Capital, the asset management arm of Mubadala Investment Company.

The newly formed alliance is set to introduce several new business lines, supported by an internal team dedicated to pursuing inorganic growth through strategic partnerships and acquisitions. This initiative reflects a shared commitment to expanding their footprint in the alternative investment space, particularly in sectors such as credit and real estate across both public and private markets.

Fortress, managing over $48 billion in assets on behalf of approximately 2,000 institutional investors and private clients, continues to operate as an independent investment manager under its established brand. The firm maintains full autonomy over its investment processes, decision-making, personnel, and operations, ensuring continuity in its approach and client relationships.

The collaboration is poised to leverage Mubadala Capital’s global network and diversified asset portfolio, enhancing Fortress’s ability to expand sourcing channels and build new client relationships. This synergy is expected to support strategic growth and expansion, positioning both entities to capitalise on emerging opportunities within the alternative investments landscape.

In a joint statement, Fortress co-CEOs Drew McKnight and Joshua Pack expressed enthusiasm about the partnership, highlighting the strengthened alignment of interests and the deepened long-term relationship with Mubadala. They emphasised that the investment landscape is increasingly aligning with Fortress’s core strengths, signalling a promising future for the firm and its stakeholders.

Hani Barhoush, CEO and Managing Director of Mubadala Capital, underscored the significance of the partnership, noting the strong relationship developed since Mubadala’s initial investment in 2019. He expressed confidence in the combined expertise and global networks of both organisations to unlock significant value creation opportunities and deliver superior risk-adjusted returns to investors.

This strategic move aligns with Mubadala Capital’s broader ambitions to become a significant player in global private capital. The firm has been actively expanding its investments in private equity and venture capital, including companies like Bugaboo and Arbol. The partnership with Fortress represents a continuation of Mubadala’s strategy to leverage its substantial resources and global reach to capitalise on opportunities in the alternative investment sector.

The transaction builds on an already successful partnership between the two organisations and better positions Fortress to capitalise on opportunities in the global credit markets. With the close of the transaction, Fortress management now owns a 32% equity interest in the company, entitling them to appoint a majority of seats on the board. A consortium led by Mubadala Capital owns the remaining 68% of Fortress equity.

Under the new joint ownership, Fortress expects to further establish itself as a leader in the alternative investment space, particularly in credit and real estate across public and private markets. The firm anticipates benefiting from Mubadala Capital’s global network and extensive portfolio of diversified assets, leveraging the companies’ shared experience and resources to expand sourcing channels, build new client relationships, and support strategic growth and expansion.