Sovereign wealth fund Mubadala Investment Co., Abu Dhabi, and Fortress Investment Group's management agreed to acquire a 90% stake in Fortress from SoftBank Group.
Terms of the deal were not disclosed. After the deal closes in the first quarter of 2024, Fortress management is expected to own a 30% equity interest in the company, a news release Monday said.
Mubadala Capital, which currently holds a 10% stake in Fortress through its private equity funds, will own a 70% stake.
When the transaction is complete, subject to customary and regulatory approvals, Fortress will operate independently in terms of its investment processes, decision making and staff.
Mubadala has $284 billion in assets. Fortress Investment Group had $45.8 billion of assets under management as of Dec. 31.
Managing partners Drew McKnight and Joshua Pack will be appointed co-CEOs of Fortress and co-chairman Pete Briger will be appointed chairman.
Mubadala Capital's CEO and managing director, Hani Barhoush, will continue to serve on the board.
"We have worked closely with Mubadala for years and have enormous respect for their investment acumen and discipline. We view Mubadala's further investment as an affirmation of the business model and investment approach we have embraced for more than 20 years, and — at a time when market dynamics are better aligned than ever before with our experience and expertise — we could not be more excited about the future of Fortress," Mssrs. Briger, McKnight and Pack said in the release.
Mr. Barhoush added in the release: "We have a strong existing relationship with Fortress' exceptional management team, and are excited to deepen the relationship further in the years ahead based on a strong alignment of vision, while delivering even greater value to our investors."