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Abu Dhabi’s Mubadala Investment Company has signed a “definitive agreement” to acquire a 90.01% stake in Fortress Investment Group from SoftBank Group.
Terms of the deal were not disclosed and the deal is subject to customary closing conditions and regulatory approvals, the sovereign fund said in a statement on Monday.
Fortress currently manages $46 billion in assets invested in alternative investments, particularly credit and real estate in the public and private markets.
Upon completion of the transaction, Fortress management is expected to own 30% of the company and will hold a Class 1 equity interest, giving Fortress management the right to appoint a majority of the board of directors.
Mubadala Capital, a wholly-owned asset management subsidiary of Mubadala Investment, currently holds a 9.99% stake in Fortress through its Private Equity Funds II and III, and will hold a 70% stake in Fortress.
In addition, following the closing of the transaction, Fortress will continue to operate as an independent investment manager under the Fortress brand, with full autonomy over investment processes and decision-making, personnel and operations.
Drew McKnight and Joshua Pack will be named co-CEOs of Fortress, and Pete Briger will be named chairman.
Mubadala Capital CEO and Managing Director Hani Barhoush, who has served on Fortress’s board since 2019, will continue to serve on the board.
The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.
(Writing by Brinda Darasha; Editing by Seban Scaria)
brinda.darasha@lseg.com
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