Abu Dhabi’s Mubadala has inked a strategic partnership with Fortress Investment Group which will see the sovereign wealth fund deploy $1bn (£0.75bn) into a range of Fortress’s existing private credit, asset-based lending and real estate strategies.
Mubadala holds a significant stake in Fortress through its asset management subsidiary Mubadala Capital. The Abu Dhabi-based investor has been ramping up its private credit activity over the past year, taking a 42 per cent stake in Silver Rock Financial, and extending an existing partnership with Apollo.
The new partnership with Fortress will focus on credit and special situations co-investment opportunities, alongside Fortress’s existing pools of capital.
Read more: Apollo extends partnership with Mubadala
“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 chief executive 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 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.”
Read more: Mubadala buys 42pc share in LA-based credit manager
“We look forward to continuing to work with the Fortress team to realise the significant benefits of this partnership,” added Fabrizio Bocciardi, head of credit investments at Mubadala.
“As both a significant Fortress shareholder and a long-term investor in private debt, this partnership with Fortress is a win-win, anchored in attractive and fast-growing credit asset classes, where Fortress has longstanding investment and asset management experience.”
Drew McKnight, co-chief executive of Fortress, said that the partnership builds on the company’s already strong relationship with Mubadala and allows them to invest in a range of its 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,” said McKnight.
“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.”
In May 2024, Fortress, Mubadala, and Mubadala Capital announced the completion of the acquisition of 90.01 per cent of the equity of Fortress. Fortress continues to operate as an independent investment manager, with Fortress management holding full autonomy over investment processes and decision making, personnel and operations.
Read more: Mubadala: Private credit is best-performing asset class
