Fortress pours into UK chipmaker: Mubadala-backed Fortress Investment Group has extended a USD 100 mn convertible loan to Imagination Technologies, a British microchip company owned by private equity firm Canyon Bridge, according to a press release. The loan allows Fortress to gain ownership in the microchip firm at a later date.

Where are the proceeds going? Imagination plans to use the investment ticket to support its expansion plans, particularly in the fields of AI, graphics, and computing.

About Imagination: The semiconductor company was fully acquired in 2017 by Chinese state-backed Canyon Bridge for GBP 550 mn, subsequently delisting from the London Stock Exchange. Imagination’s clients include Apple, which uses the firm’s graphics processing units in its devices.

Fortress wants to make Imagination a big player in AI: “We look forward to bringing Fortress’s expertise in intellectual property, technology and growth investing to help Imagination continue expanding its leadership in the industry, develop new capabilities, and maximize the value of its portfolio,” Head of Intellectual Property at Fortress Eran Zur said.

Background: Mubadala finalized its acquisition of 90% of US asset manager Fortress in May, after agreeing to concede operational control and promised concessions regarding data security.

ICYMI- Fortress aims to double its assets under management to USD 100 bn within five years, as it pushes into private wealth and ins. The firm is also planning to foray into venture debt and structured trades, as well as set up an Abu Dhabi office.

ADVISORS- Barclays and Jefferies served as Imagination’s joint placement agents in the transaction.

The story got ink in The Telegraph.

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