Mubadala Investment Company has announced a significant strategic partnership with Fortress Investment Group, involving a $1 billion investment aimed at credit and special situations co-investment opportunities. This partnership intends to deploy the full $1 billion from Mubadala into various private credit, asset-based lending, and real estate strategies offered by Fortress, enhancing their existing pool of capital.

Through its asset management subsidiary, Mubadala Capital, Mubadala holds a substantial stake in Fortress. Omar Eraiqaat, the deputy CEO of credit and special situations at Mubadala, emphasized that private credit plays an increasingly critical role in global capital markets, providing attractive risk-adjusted returns and flexible financing solutions for businesses. He noted that this partnership utilizes the complementary strengths of both companies to access a diverse array of credit and real estate strategies.

This investment aligns with Mubadala Capital’s growth strategy, which focuses on forming long-term relationships with leading general partners and strategically growing through partnerships and acquisitions. In May 2024, Fortress, along with Mubadala and Mubadala Capital, completed the acquisition of 90.01 percent of Fortress’s equity. At that time, Fortress management retained a 32 percent equity interest, allowing them to appoint a majority of the board, while a consortium led by Mubadala Capital held the remaining 68 percent.

Josh Pack, co-CEO of Fortress, indicated that this partnership would enhance their capabilities by providing greater capital to execute a robust pipeline of transactions in private credit, asset-based lending, and real estate finance. Fortress has a long history in these areas, deploying over $100 billion across thousands of transactions in more than two decades.

Drew McKnight, co-CEO of Fortress, remarked that their partners increasingly seek tailored investment solutions that can enhance returns across the credit spectrum. He expressed satisfaction that this partnership with Mubadala would help expand borrowers’ access to capital by leveraging larger and more diverse pools of investor capital.