US-based Apollo is to take a minority equity stake in Mubadala Capital, the alternative asset management arm of Abu Dhabi's Mubadala Investment Company.

The size of the stake and the value of the deal have not been disclosed. Apollo will also commit capital across Mubadala Capital's investment strategies.

Additional strategic investors will join Apollo as minority shareholders. Together they are expected to commit $5bn to Mubadala Capital's investment strategies at initial close. The other investors have not been named.

Mubadala Investment Company will remain the majority shareholder. Apollo joins the founders of Silver Rock Financial as an equity holder in the firm.

Mubadala Capital said the investment will help it broaden its investor base, expand its strategies and pursue new opportunities globally. The firm will continue to operate independently, with its existing management team retaining authority over investment decisions and operations.

Founded in 2011, Mubadala Capital's core alternatives business manages more than $60bn across private equity, special opportunities focused on Brazil, credit and venture capital, as well as solutions and co-investment platforms. Including its strategic partnerships, it manages, advises and administers more than $755bn of assets.

The deal builds on a relationship stretching back several years. Mubadala anchored the formation of Apollo Strategic Origination Partners in 2020, and Apollo invested in Mubadala Capital's evergreen solutions strategy when the Mubadala Capital Solutions unit launched in 2023. The two also formed a $2.5bn joint venture to co-invest in global private credit opportunities. In November 2024, Apollo and Mubadala Investment Company extended their multibillion-dollar partnership focused on global origination opportunities.

Apollo had about $1.05tn of assets under management at the end of June.

The transaction is expected to close in Q4, subject to regulatory and legal approvals.

Goldman Sachs and Jefferies are financial advisers and Skadden, Arps, Slate, Meagher & Flom is legal counsel to Mubadala Capital. Morgan Stanley is financial adviser and Paul, Weiss, Rifkind, Wharton & Garrison is legal counsel to Apollo.