Apollo has extended its partnership with Abu Dhabi’s Mubadala Investment Company for multiple years, as it looks to grow its private debt and equity origination capabilities globally.

The partnership between the alternative asset manager and the sovereign wealth fund was first announced in 2022. Apollo said the extension further strengthens its capital solutions business and ability to originate investment opportunities of scale across asset classes to help meet the growing demand for bespoke private debt and equity financing solutions.

The value of the partnership extension was not disclosed.

“We are pleased to extend our partnership with Mubadala, which builds on our strong relationship and several strategic initiatives that we have collaborated on over the past several years,” said Apollo’s co-president Jim Zelter.

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“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, and we believe the platform that the firm has created is particularly well positioned as a financing provider of choice to leading companies.”

Omar Eraiqaat, deputy chief executive of the diversified investments platform at Mubadala, added: “We share an aligned investment philosophy with Apollo and are pleased to extend our longstanding and strategic partnership with them, which provides us access to Apollo’s differentiated origination ecosystem. 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.”

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Apollo and Mubadala have previously entered into several strategic collaborations, including a $2.5bn (£1.9bn) private credit joint venture last year.

Additionally, Mubadala invested in Apollo’s new middle market lending vehicle, Middle Market Apollo Institutional Private Lending, earlier this year.

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.

At Apollo’s investor day in October, the firm announced a new target of reaching $275bn of annual origination volumes in the next five years.

https://alternativecreditinvestor.com/2024/11/11/apollo-extends-partnership-with-mubadala/