Mubadala Investment Company has signed a $1 billion strategic partnership with Fortress Investment Group to invest in a range of private credit, asset-based lending, and real estate strategies, the companies announced on 24 April.
The capital will be deployed alongside Fortress’s existing pools of capital across several credit-focused platforms. The move expands Mubadala’s exposure to private credit markets through its asset management arm, Mubadala Capital, which holds a 68% stake in Fortress.
The agreement follows the May 2024 completion of Mubadala’s acquisition of 90.01% of Fortress, alongside Fortress management, which retains a 32% equity interest and operational control.
Omar Eraiqaat, Deputy CEO of Credit and Special Situations at Mubadala, said the partnership builds on Mubadala’s existing stake in Fortress and aims to increase exposure to credit assets amid rising demand for private financing solutions.
Mubadala Capital has been growing its presence in global asset management by backing general partners and expanding into new investment platforms. The firm has also set up a team to focus on inorganic growth through partnerships and acquisitions, including the Fortress deal.
Fortress, which has deployed over $100 billion in private credit and asset-based transactions over the past two decades, will continue to manage its strategies independently. Co-CEOs Drew McKnight, and Josh Pack said the Mubadala partnership will scale existing strategy and offer borrowers broader access to capital.
The deal comes amid growing institutional demand for private credit, driven by tighter bank lending conditions and higher interest rates. According to PitchBook, global private credit AUM reached $1.6 trillion in 2024, with North America and Europe leading the growth. Real estate and asset-based finance have also seen renewed investor interest amid market volatility and refinancing pressures.
The partnership positions Mubadala to expand its credit footprint through Fortress’s origination and execution network while supporting Fortress’s pipeline of direct lending, structured credit, and real estate transactions in the US and international markets.
