Mubadala and Fortress Investment Group Enter into a Strategic Partnership to Invest in a Range of Private Credit Initiatives

Mubadala Investment Company (“Mubadala”), a global sovereign investor, and Fortress Investment Group (“Fortress”), a global investment manager, today announced the signing of a $1 billion strategic partnership (the “Partnership”) focused on credit and special situations co-investment opportunities.

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The Partnership seeks to deploy $1 billion from Mubadala in a range of Fortress’s existing private credit, asset-based lending and real estate strategies alongside Fortress’s existing pools of capital.

Mubadala, through its asset management subsidiary Mubadala Capital, holds a significant stake in Fortress.

“This strategic partnership with Fortress builds upon our existing shareholding and underscores the strength and depth of the relationship between our two institutions,” said Omar Eraiqaat, Deputy CEO of Credit and Special Situations at Mubadala. “Private credit continues to play an increasingly vital role in global capital markets, offering attractive risk-adjusted returns and providing flexible financing solutions for businesses. This partnership leverages the complementary strengths of both Mubadala and Fortress, providing access to a diverse range of credit and real estate strategies.”

Fabrizio Bocciardi, Head of Credit Investments at Mubadala, added: "We look forward to continuing to work with the Fortress team to realize the significant benefits of this partnership. As both a significant Fortress shareholder and a long-term investor in private debt, this partnership with Fortress is a win-win, anchored in attractive and fast-growing credit asset classes, where Fortress has longstanding investment and asset management experience."

“This Partnership builds on our strong relationship with Mubadala and allows them to invest in a range of our core strategies,” added Drew McKnight, Co-CEO of Fortress. “In conversations with our partners, we increasingly hear that they want tailored and scalable investment solutions that can enhance returns across the credit spectrum. At the same time, we’re seeking to expand borrowers’ access to capital by securing larger and more diverse pools of capital from investors. We’re pleased to be able to deliver on both those objectives through this Partnership with Mubadala.”

Josh Pack, Co-CEO of Fortress, added, “Across more than 25 years of being a pioneer and innovator in private capital, we’ve consistently delivered best-in-class returns and solutions to our limited partners. This Partnership with Mubadala will allow us to bring more scale to our franchise, with additional capital with which to execute our strong pipeline of private credit, asset-based lending, and real estate finance transactions.”

In May 2024, Fortress, Mubadala, and Mubadala Capital announced the completion of the acquisition of 90.01% of the equity of Fortress. At close, Fortress management owned a 32% equity interest in the company in a class of equity entitling Fortress management to appoint a majority of seats on the board; a consortium led by Mubadala Capital, Mubadala’s asset management subsidiary, owned 68% of Fortress equity. Fortress is an independent investment manager, with Fortress management holding full autonomy over investment processes and decision making, personnel and operations.

The Fortress investment is a strong example of Mubadala Capital’s growth strategy as a global asset manager, which is predicated on developing long-term relationships with leading GPs, agreeing on a fair valuation for their business, aligning with management while empowering them to continue managing their firm with access to the Mubadala ecosystem through LP capital and fundraising support. The company intends to continue executing against this strategy in a number of new business lines and have established an internal team entirely focused on growing inorganically through strategic partnerships and acquisitions.

Fortress’s private credit, asset-based lending and real estate strategies combine sourcing, structuring and execution capabilities across the capital structure. Direct corporate credit and asset-based financing have been at the core of Fortress’s offering for more than two decades, with more than $100 billion deployed across thousands of transactions, making Fortress one of the most experienced managers in the market today. Fortress has longstanding real estate debt and equity investing and asset management experience across the globe, with a fully integrated approach covering origination, acquisition, underwriting and risk management.

About Mubadala Investment Company

Mubadala Investment Company is a global sovereign investor managing a $302bn portfolio that spans six continents with interests in multiple sectors and asset classes. The company leverages its deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.

For more information about Mubadala Investment Company, please visit: www.mubadala.com

About Fortress Investment Group

Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $50 billion of assets under management as of 31 December 2024, on behalf of approximately 2,000 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.

AUM refers to assets Fortress manages, including capital that Fortress has the right to call from investors, or investors are otherwise required to contribute, pursuant to their capital commitments to various funds or managed accounts.

For more information, please visit www.fortress.com

About Mubadala Capital

Mubadala Capital is the alternative asset management subsidiary of Mubadala Investment Company, a c. $302 billion global investor headquartered in Abu Dhabi, UAE. Mubadala Capital manages over $30 billion of assets through its four investment businesses spanning various private market strategies, including private equity, special situations, solutions, and venture capital. Mubadala Capital has a team of over 200 spanning 5 offices in Abu Dhabi, New York, London, San Francisco, and Rio de Janeiro. Mubadala Capital aims to be the partner of choice for investors looking for attractive and differentiated risk-adjusted returns across various private markets and alternative asset classes.

For more information, please visit www.mubadalacapital.ae

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