Mubadala Capital, a subsidiary of Abu Dhabi’s Mubadala Investment Company and New York-based Fortress Investment Group (Fortress) have completed the acquisition of the 90.01% of the equity of Fortress held by SoftBank.
As per the terms of the agreement, Fortress management now owns a 32% equity interest in the company, while a consortium led by Mubadala Capital owns 68% of Fortress equity.
Mubadala and Fortress Investment first announced their intention to jointly acquire most of the Fortress equity held by Softbank in 2023. SoftBank held a controlling stake in the company since 2017, while Mubadala previously held a 9.99% stake through its Private Equity Funds II and III.
“Fortress expects to benefit from Mubadala Capital’s global network and extensive portfolio of diversified assets, leveraging the companies’ extensive shared experience and resources to expand sourcing channels, build new client relationships and to support strategic growth and expansion,” the company said in a statement.
Mubadala Capital’s CEO and Managing Director, Hani Barhoush, who has served on Fortress’ board since 2019, will continue to serve on the board, the company revealed.
“Looking ahead, we are confident that collectively, we will unlock significant value creation opportunities and deliver superior risk-adjusted returns to our investors and to Fortress’ stakeholders,” Barhoush said.
Fortress continues to operate as an independent investment manager, with full autonomy over investment processes and decision-making, personnel and operations. The firm currently manages over $48 billion of assets on behalf of approximately 2,000 institutional investors and private clients.
Fortress co-CEOs Drew McKnight and Josh Pack, Managing Partner Jack Neumark, and co-Chairman Pete Briger were the largest individual investors in the buy-out, joined by approximately 150 members of the firm.
