Abu Dhabi’s Mubadala and US investor Fortress start $1 billion private loan partnership
Mubadala Investment Company, Abu Dhabi’s government-owned wealth fund, and US investor Fortress have agreed to work together in a $1 billion deal to invest in private loans, according to a statement released on Thursday.
Mubadala-Fortress Partnership
Mubadala and Fortress have formed a partnership. This means Mubadala will invest money alongside Fortress in areas like private loans, asset-based lending, and real estate.
The private credit market has grown a lot in recent years. Big investment companies are interested in it because new rules have made it more expensive for banks to give risky loans.
Drew McKnight, co-CEO of Fortress, said this partnership with Mubadala (which manages $330 billion) will help meet the growing demand from investors for flexible loan solutions. It will also give borrowers access to more funding from different sources.
Alternative Investments
Sovereign wealth funds in the Gulf region are investing more in private credit to spread their investments and take advantage of opportunities in asset-based lending and special situations.
This trend shows that these funds are focusing more on alternative investments to earn better returns and access more capital.
The deal with Fortress shows that Mubadala is serious about alternative investments and wants to spread its investments around the world.
Last year, a group led by Mubadala Capital (a Mubadala subsidiary) bought 68% of Fortress Investment Group. Even with Mubadala owning most of it, Fortress still controls its own decisions, operations, and staff.
As of December 31, Fortress managed $50 billion for around 2,000 large clients.
Mubadala’s Other Partnerships
Mubadala invests money for the Abu Dhabi government. It puts money into fast-growing areas like artificial intelligence, semiconductors, fintech, medical innovation, infrastructure, and both traditional and renewable energy.
In December 2024, Mubadala teamed up with Carlyle’s AlpInvest Partners to offer funding solutions to private equity firms.
In October, Mubadala Capital raised $3.1 billion for its fourth private equity fund—well above its $2 billion goal.
In March 2024, Mubadala invested in Blue Opal Capital’s second venture capital fund. And in February 2024, it made a $1 billion deal with Goldman Sachs to invest in private credit in the Asia Pacific region.
Published: 25th April 2025
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