Mubadala doubles down on private credit with USD 1 bn Fortress tie-up

Mubadala Investment Company is committing USD 1 bn to a new strategic partnership with US-based asset manager Fortress Investment Group, with a focus on private credit, asset-based lending, and real estate strategies, according to a statament. The funds will be deployed across Fortress’ credit and special situation strategies.

Background: Mubadala acquired a controlling stake in Fortress via its asset management arm Mubadala Capital last May, with Fortress management retaining board control and operational independence.

Mubadala has been doubling down on private credit: Private credit has been Mubadala’s top-performing asset class for three straight years, and it currently boasts several private credit partnerships across the US, Europe, and Asia.

Fortress is a sought-after credit powerhouse: The firm has deployed over USD 100 bn in credit transactions over the past two decades. It recently drew interest from European private equity giant CVC Capital Partners, which reportedly held acquisition talks with Mubadala last month, but discussions broke down over valuation differences.