Apollo Global Management and Mubadala Investment Co., the United Arab Emirates' $302 billion sovereign wealth fund, have entered into a multiyear extension that includes a multibillion-dollar commitment across asset classes, an Apollo spokesperson said.
Apollo executives declined to comment further. Mubadala executives could not be immediately reached for further information, including the size of the commitment and the length of the extension.
The extension of the partnership that began in 2022 will help Apollo strengthen its capital solutions business and its ability to originate large investment opportunities across asset classes. Apollo's capital solutions business partners with investment teams and clients across the firm's platform on origination, capital markets and syndication activities.
“Further enhancing our ability to originate investment opportunities that offer strong risk-adjusted returns is our top priority amid unprecedented demand for large-scale, customized capital solutions,” said Jim Zelter, Apollo co-president, in a joint news release.
At Apollo’s Investor Day in October, the firm announced a new target of reaching $275 billion of originations each year over the next five years, up from a 2024 target of $125 billion. The firm disclosed in its third-quarter earnings call a record $62 billion of originations in the third quarter, up from $52 billion in the prior quarter.
“We share an aligned investment philosophy with Apollo and are pleased to extend our long-standing and strategic partnership with them, which provides us access Apollo’s differentiated origination ecosystem,” said Omar Eraiqat, deputy CEO of Mubadala’s diversified investments platform. “We continue to observe a secular shift in corporate financing toward private market execution and believe that this platform will continue to provide a scaled supply of attractive investment opportunities.”
The strategic partnership has helped to support the growth of Apollo's capital solutions business. Among the recent strategic collaborations, Mubadala in March made a $450 million seed investment into Middle Market Apollo Institutional Private Lending, a business development company. Mubadala owns about 10% of the vehicle, Securities and Exchange Commission filings show. In addition, the firms in 2023 formed a $2.5 billion joint venture to co-invest in global private credit opportunities over five years. Apollo also invested in Mubadala’s evergreen solutions strategy as part of the launch of its Mubadala Capital Solutions unit in 2023, and Mubadala anchored the formation of Apollo Strategic Origination Partners in 2020.
"We saw a lot of success in the first two-plus years of the partnership, which helped support the growth of our capital solutions business," earning $500 million in annual fee revenue in two years, the spokesperson said.
"Mubadala is one of our most important strategic relationships, and we expect to continue to find innovative ways to collaborate with them moving forward," the spokesperson said.
Apollo has $733.2 billion in assets under management.
