Mubadala and Apollo expand partnership to seek multi-billion deals across asset classes

The collaboration builds on Mubadala-backed Apollo Strategic Origination Partners platform created in 2020

Mubadala Investment Company on Tuesday said it has expanded its deal origination partnership with global asset manager Apollo. Photo: Mubadala

Apollo Global Management, one of the world’s largest alternative investment managers, and Abu Dhabi’s strategic investment arm Mubadala Investment Company, are expanding their global partnership to further build capabilities to originate transactions across asset classes.

The expanded partnership builds on the Mubadala-backed Apollo Strategic Origination Partners (Asop) platform and is designed to benefit a range of capital needs and meet increasing market demand for multi-billion-dollar equity and debt solutions, Mubadala said in a statement on Tuesday.

Apollo expects the deal will help to achieve its five-year deal origination targets and support other goals set at its Investor Day.

“We have long been a solutions provider to large issuers in credit, and now through this expanded partnership and our growing capital solutions business, we continue to better position ourselves to serve clients across the capital structure,” Apollo chief executive Marc Rowan said.

“We are pleased to extend our strategic partnership with Mubadala, together helping the leading companies access creative and tailored financing throughout market cycles.”

In June 2020, Apollo announced the launch of the Asop as a credit unit to provide companies with loans of about $1 billion.

The unit, with Mubadala as its lead backer, is expected to provide $12bn in capital to companies over the next three years through direct lending, it said at the time.

“We believe that this platform will give Mubadala access to a pipeline of compelling investment opportunities, enabling us to capitalise on the global shift in corporate finance execution,” said Waleed Al Muhairi, Mubadala’s deputy group chief executive.

Waleed Al Muhairi, Mubadala’s deputy group chief executive, and Marc Rowan, Apollo chief executive. Photo: Apollo

“The two organisations have a long-standing and mutually beneficial partnership, driven by shared investment philosophies and underscored by Mubadala's support to further enhance the Apollo Capital Solutions platform.”

The expanded collaboration is also expected to strengthen Apollo’s capital solutions business, which operates across the company’s global investment platform with a growing team of professionals focused on origination, syndication and broader capital markets activities.

“With additional capital commitments from Mubadala, we expect to transact on a larger scale across asset classes and with greater speed,” Craig Farr, Apollo partner and head of Apollo Capital Solutions, said, without giving financial details of the deal.

“Our ability to serve as a preferred counterparty benefits both corporate borrowers and our investors as we increase our relevance in the financing ecosystem.”

We believe that this platform will give Mubadala access to a pipeline of compelling investment opportunities, enabling us to capitalise on the global shift in corporate finance execution

Waleed Al Muhairi,
deputy group chief executive, Mubadala

This month, the US investment firm agreed to invest $1.4bn through Apollo-managed funds and clients in Aldar Properties, which will help the company unlock value and represents one of the largest foreign direct investments in Abu Dhabi’s private sector.

The investment allocates $500 million into a land joint venture, $500m into perpetual subordinated notes issued by Aldar Investment Properties, $300m in mandatory convertible preferred equity investment in Aldar Investment Properties, and $100m in common equity investment in Aldar Investment Properties, Aldar said in a statement at the time.

Apollo is also part of a long-term joint venture with Adnoc in which Apollo funds and clients led a $2.7bn investment in a real estate venture.