Mubadala Investment and Fortress Investment Group have announced a new $1bn partnership aimed at deploying capital across private credit and special situations strategies.
The partnership will focus on co-investment opportunities within Fortress’s existing lending and real estate platforms. It will utilise a combination of Mubadala’s capital and Fortress’s established investment vehicles.
Under the agreement, Mubadala will invest alongside Fortress across a range of strategies, including asset-based lending, direct corporate credit, and real estate finance. This capital will be deployed from Fortress’s existing funds, extending the investment scope of both firms in global credit markets.
The collaboration builds on the existing relationship between the two entities.
In May 2024, Fortress completed a change in ownership structure whereby a Mubadala Capital-led consortium acquired a 90.01% equity stake in the former.
As part of that transaction, Fortress’s management retained a 32% ownership share with board-level governance rights, while Mubadala Capital, a wholly owned asset management subsidiary of Mubadala, assumed the remaining 68%.
Despite the majority shareholding, Fortress continues to operate as an independent investment manager. Its executive team retains full control over investment decisions, staffing, and operational oversight.
The structure ensures continuity in Fortress’s investment processes while allowing access to Mubadala’s broader capital network.
The strategic investment into Fortress aligns with Mubadala Capital’s wider objective to scale its presence as a global asset manager.
According to the firm, this model involves identifying strong general partners and negotiating equity positions at mutually agreed valuations. It also enables these partners to continue operating independently while accessing Mubadala’s ecosystem for capital support and fundraising leverage.
Fortress co-CEO Drew McKnight said: “This Partnership builds on our strong relationship with Mubadala and allows them to invest in a range of our core strategies.
“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.”
Mubadala has dedicated internal resources to grow this initiative, targeting expansion into new business segments via acquisitions and collaborative ventures.
Mubadala credit and special situations deputy CEO Omar Eraiqaat said: “This strategic partnership with Fortress builds upon our existing shareholding and underscores the strength and depth of the relationship between our two institutions.
“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.”
