Apollo, Mubadala extend multi-billion-dollar partnership

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Apollo Global Management and Mubadala Investment Company have announced the extension of their multi-billion-dollar partnership, a strategic move that will further strengthen Apollo’s Capital Solutions business and enhance its ability to originate investment opportunities across asset classes.

This partnership, which was first established in 2022, is set to continue expanding and play a pivotal role in meeting the growing global demand for bespoke private debt and equity financing solutions.

Strengthening the partnership

The renewed partnership builds on a long-standing and successful relationship between Apollo and Mubadala, which has seen both entities collaborate on a variety of high-profile strategic initiatives in recent years.

Jim Zelter, co-president of Apollo Asset Management, expressed enthusiasm about the extended partnership, stating, “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.

“Enhancing our ability to originate investment opportunities that offer strong risk-adjusted returns is our top priority, especially given the unprecedented demand for large-scale, customised capital solutions.”

As part of this extension, both firms will leverage Apollo’s comprehensive origination platform, which is designed to cater to the increasing demand for large, tailored financing solutions in various sectors, including clean energy, power and utilities, and digital infrastructure.

Mubadala’s continued strategic support

Omar Eraiqaat, Deputy CEO of Mubadala’s Diversified Investments platform, emphasised the alignment of investment philosophies between the two firms, saying, “We share an aligned investment philosophy with Apollo and are pleased to extend our longstanding strategic partnership. This partnership continues to provide us with access to Apollo’s differentiated origination ecosystem, which is well-positioned to capture attractive investment opportunities in an increasingly private market-oriented corporate financing landscape.”

Mubadala has been a key partner in enabling Apollo to scale its operations and enhance its global reach. The strategic extension of the partnership allows both firms to capitalize on a growing shift in corporate financing, with more companies opting for private market solutions rather than traditional public financing routes.

Apollo’s ambitious growth plans

At its Investor Day in October 2024, Apollo announced its ambitious target of achieving **$275 billion** in annual origination volumes over the next five years. This bold goal reflects the firm’s confidence in its ability to address the financing needs of large corporate borrowers and its growing role as a key provider of capital in sectors vital to the global economy’s future.

Eric Needleman, partner and head of Apollo Capital Solutions, highlighted the significance of Mubadala’s ongoing support in driving this vision forward. “Mubadala is among the most sophisticated alternative investors globally, and their continued support of our origination and Capital Solutions business positions us to capitalise on a growing global opportunity set as corporate borrowers increasingly recognise the value of private financing solutions.”

Longstanding collaboration

The partnership extension also builds on several recent initiatives between Apollo and Mubadala, which have further diversified their joint investments. Notably, the firms co-invested in a $2.5bn joint venture focused on global private credit opportunities.

In addition, Mubadala supported the launch of Middle Market Apollo Institutional Private Lending earlier this year, expanding Apollo’s capabilities in middle-market lending.

The partnership’s evolution also includes Apollo’s investment in Mubadala’s evergreen solutions strategy as part of the launch of Mubadala Capital Solutions in 2023. This further reinforces the relationship between the two firms, positioning them as leaders in the global investment landscape.

This expanded collaboration builds on a history of successful partnerships dating back more than nine years in the direct lending space.

Fabrizio Bocciardi, head of Credit Investments at Mubadala, reflected on the long-term benefits of the partnership. He said: “Mubadala and Apollo have a long-standing and mutually beneficial strategic relationship. Our partnership in the credit sector began more than nine years ago, and it has since expanded to other private debt asset classes driven by Apollo’s innovative capital solutions.”