Apollo buys into Mubadala Capital, with $5bn of new commitments expected

What happened

Mubadala Capital said on Monday that Apollo will buy a minority equity stake and also put money into its various investment strategies. Other strategic investors will join as minority owners, and together with Apollo they are expected to commit a combined $5 billion at initial close. CNBC, citing people familiar with the matter, said Apollo's slice is close to 10%. No price or valuation was disclosed. Mubadala Investment Company stays the majority owner, and the founders of Silver Rock Financial also hold equity. The Financial Times (FT) reported that the deal comes 18 months after a planned equity investment by TWG, the holding company of Mark Walter, which never closed.

What it means

Mubadala Capital is the money-management arm of Mubadala Investment Company, one of Abu Dhabi's state investment funds. Founded in 2011, it now runs more than $60 billion in its core alternatives business, spread across five strategies: private equity, special opportunities with a focus on Brazil, credit, venture capital, and its Solutions and co-investment platforms. Counting its wider partnerships in areas such as private wealth and insurance, the firm says it manages, advises or administers over $755 billion for clients. It employs more than 250 people across Abu Dhabi, London, New York, Rio de Janeiro and San Francisco.

For Apollo, which had roughly $1.05 trillion of assets under management at the end of June, this is a relatively small check. But it fits a pattern. CNBC noted that Apollo has bought stakes in other asset management platforms, including Diameter Capital, Thoreau and Motive Partners. Owning part of another manager gives Apollo a share of that firm's growth and a closer working relationship, while its own capital commitments help the partner raise money from outside investors. Apollo said the tie-up could help both sides reach a wider pool of global investors.

The deal also deepens a long relationship. Apollo and Mubadala Investment Company set up a multibillion-dollar partnership in 2022 and extended it two years ago, and in 2023 they formed a $2.5 billion joint venture to co-invest in private credit, according to CNBC. This time Apollo is buying into the Abu Dhabi manager itself, not just investing alongside it. One person close to the deal told CNBC that "capital as a moat is a big thing", a nod to the view that size increasingly matters in asset management.

Mubadala Capital stressed that it will keep running independently, with its own governance and its current management team in charge of investment decisions. The transaction still needs regulatory and legal approvals and is expected to close in the fourth quarter of 2026. Investors will get Apollo's own update soon: the company plans to report third-quarter results on November 3.

The bull case

For Apollo, a modest outlay buys a seat inside a fast-growing manager backed by a sovereign owner, plus closer access to Abu Dhabi's deep pools of capital. The $5 billion in expected commitments gives Mubadala Capital fresh fuel to grow its funds, which could lift the value of Apollo's stake over time. It also extends a model Apollo has already used with several other managers.

The bear case

The terms are undisclosed, so outside investors cannot judge whether Apollo paid a fair price. A minority holder has little control, and Mubadala Capital's management keeps full authority over decisions. The FT's report that an earlier stake deal with TWG never completed is a reminder that such agreements can stall, and this one still needs regulatory approval. For a firm of Apollo's size, the financial impact may be small.