Mubadala Capital buys majority stake in Fortress Investment Group
With the legal guidance of a cross-border team from Shearman & Sterling, Abu Dhabi-based Mubadala Investment Company’s asset management subsidiary, Mubadala Capital, and Fortress Investment Group have announced their definitive agreements to acquire a 90.01% stake in Fortress from SoftBank Group Corp. The deal marks a significant transition in ownership for Fortress, which has been under the control of SoftBank since 2017.
Upon the completion of the transaction, Fortress management is set to retain a 30% equity interest in the company and will hold a class of equity that grants them the authority to appoint a majority of seats on the board. Mubadala Capital, which currently holds a 9.99% stake in Fortress through its Private Equity Funds II and III, will become the majority owner with a 70% equity interest.
Fortress will maintain its independent status as an investment manager following the acquisition, retaining full autonomy over its investment processes, decision-making, personnel, and operations. The company will continue to operate under the Fortress brand, leveraging its established expertise in the alternative investment space, particularly in credit and real estate across public and private markets. With $46 billion of assets under management, Fortress serves over 1,900 institutional investors and private clients.
The partnership with Mubadala Capital is expected to unlock significant value for Fortress and its stakeholders. The acquisition will position Fortress to further expand its presence in the alternative investment sector, capitalizing on opportunities in credit and real estate. Mubadala Capital’s extensive global network, diverse portfolio of assets, and access to proprietary investment opportunities will fuel Fortress’s growth and enable it to provide enhanced value to its clients.
As the deal progresses, it will undergo customary closing conditions and regulatory approvals. The joint ownership structure is expected to be finalized in the first quarter of 2024.
Advisors
Ardea Partners served as financial advisors and Shearman & Sterling served as legal counsel to Mubadala. Shearman & Sterling team included Mark Chorazak (pictured), Clare O’brien, Sean Skiffington, John J. Cannon, Larry Crouch, Lorenz Haselberger, John Adams, Phil Baynes, Thomas Donegan, Jennifer D. Morton, Michael Steinberg, Paula Howell Anderson, Jeffrey J. Resetarits, Paul Schreiber, Thomas Majewski, Tobia Croffn and Fraser Padmore
Goldman, Sachs & Co. served as financial advisor and Kirkland & Ellis served as legal counsel to Fortress senior management in the transaction. Skadden Arps Slate Meagher & Flom represented Fortress in the transaction.
The Raine Group served as exclusive financial advisor and Morrison Foerster served as legal counsel to SoftBank.
