Apollo Global Management has secured a minority stake in Mubadala Capital, the alternative-asset management subsidiary of Abu Dhabi’s sovereign wealth fund, marking a significant expansion of the partnership between one of Wall Street’s largest firms and the United Arab Emirates.
The transaction includes a commitment from Apollo and a group of co-investors to deploy $5 billion across Mubadala Capital’s various investment strategies. By taking an equity interest, Apollo joins Silver Rock as an external backer of the firm, which has increasingly sought to attract outside capital to fuel its global dealmaking operations.
The move underscores Abu Dhabi’s growing influence as a global financial hub, often referred to as the “capital of capital.” The emirate’s various sovereign wealth funds collectively manage approximately $1.8 trillion in assets. Among these, Mubadala—the $385 billion parent organization—stands out as the most active state-controlled investor in the world.
Mubadala Capital was established 15 years ago and has since carved out a unique position in the Middle East. It became the first sovereign fund entity in the region to accept third-party capital, a move that allowed it to operate more like a traditional private equity firm. It currently manages roughly $60 billion within its core alternatives business.
Earlier this year, in January, Mubadala Capital further demonstrated its appetite for external partnerships by raising a $554 million fund dedicated to co-investments. These investments are typically made alongside its parent company or other major global private equity institutions. The capital infusion from Apollo is expected to bolster the firm’s ability to compete in high-growth sectors. Abu Dhabi-based firms have recently focused heavily on emerging technologies, particularly artificial intelligence and private credit, as they seek to diversify their portfolios and export their financial influence globally.
A spokesperson for Mubadala Capital noted that Apollo has been a long-standing partner to both the firm and Abu Dhabi. The new investment is designed to support a next phase of growth, which involves broadening the firm’s investor base, expanding its underlying strategies, and pursuing new opportunities on a global scale.
For Apollo, the deal provides deeper access to the deal flow and regional expertise of a major Middle Eastern power player. As the competition for private capital intensifies, such strategic cross-border partnerships are becoming essential for U.S. firms looking to tap into the massive liquidity pools of the Gulf.
