Apollo buys into Mubadala Capital, bringing USD 5 bn in commitments with it

Apollo buying into Mubadala Capital: US investment giant Apollo is taking a minority stake in Mubadala subsidiary Mubadala Capital, according to a statement. CNBC had earlier reported the stake was nearly 10%. Apollo and other incoming shareholders are expected to commit a combined USD 5 bn to Mubadala Capital’s investment strategies at initial close.

Why it matters: Mubadala Capital was built to manage the sovereign investor’s own money, and it’s now turning into a global asset manager that raises and earns fees on third-party capital. Selling minority stakes is only part of that. In July, Mubadala transferred management of its USD 25 bn credit portfolio to Mubadala Capital while keeping ownership of the assets, alongside a USD 4.65 bn commitment to expand the business. That gives it a bigger platform to pitch to pension funds, insurers, and other institutional investors. Its core alternatives business manages more than USD 60 bn across five strategies, while its wider operations, including strategic partnerships, manage, advise, or administer more than USD 755 bn.

This is the third time Mubadala Capital has sold equity to an outsider — and each transaction was built differently. The first, in 2024, was effectively a swap: Mubadala Capital bought a 42% stake in US credit manager Silver Rock Financial, and Silver Rock’s founders and the Milken family office’s M-Cor took equity in Mubadala Capital in return. TWG Global’s transaction last year was a two-way capital trade: TWG took 5% and committed USD 2.5 bn to Mubadala Capital products, while Mubadala Capital anchored a USD 10 bn investment in TWG’s USD 15 bn equity raise, which gave Mubadala exposure to the Walter-Tull portfolio.

The Apollo transaction is the most one-directional on paper: Apollo gets equity and commits capital, but the statement mentions no Mubadala commitment to Apollo in return. Then again, the flow has already gone the other way — Mubadala has spent years seeding Apollo’s strategies. The two have worked together on private-market financing since 2020, including a USD 2.5 bn private credit joint venture launched in 2023.

What doesn’t change: Mubadala Investment Company stays the majority shareholder. Mubadala Capital keeps its own governance, and its management retains full authority over investment decisions.

What’s next: The transaction is expected to close in 4Q 2026, pending regulatory approvals.

ADVISORS- Goldman Sachs and Jefferies are financial advisors to Mubadala Capital, with Skadden, Arps, Slate, Meagher & Flom as counsel. Morgan Stanley is financial advisor to Apollo, with Paul, Weiss, Rifkind, Wharton & Garrison as counsel.