Abu Dhabi’s Mubadala Investment Company has formed a $1bn strategic alliance with Fortress Investment Group, targeting opportunities across private credit, asset-based finance, and real estate lending, according to a report by Reuters citing a joint statement released on Thursday.
The agreement deepens Mubadala’s exposure to the fast-growing private credit market, which continues to gain traction amid tightening regulatory constraints on traditional bank lending. Mubadala, which manages approximately $330bn in assets, will co-invest alongside Fortress across a suite of credit-oriented strategies.
The transaction further builds on Mubadala’s expanding presence in the alternative credit space.
Mubadala Capital, a wholly owned subsidiary of the sovereign wealth fund, led a consortium that acquired a 68% stake in Fortress in 2023. Despite the ownership structure, Fortress maintains full independence over its investment processes, decision-making, and operations.
As of 31 December 2024, Fortress managed approximately $50bn in assets on behalf of 2,000 institutional clients globally.
Gulf sovereign wealth funds have increasingly turned to private credit to diversify returns and enhance portfolio resilience.
Mubadala has previously partnered with global asset managers including Apollo Global Management and Goldman Sachs. In December 2024, the firm announced a move to acquire a 42% interest in US-based credit specialist Silver Rock Financial.
Private credit – comprising direct lending to mid-market corporates, real estate borrowers, and asset-backed financing – has emerged as a key alternative asset class.
Global assets under management in private credit surpassed $1.5tn in early 2024, with forecasts suggesting the sector could approach $2.8tn by 2029.
