Apollo and Mubadala Investment Company have announced an extension of their multi-billion-dollar partnership focused on global origination opportunities. 

 

The multiple year extension of this partnership, which was first established in 2022, further strengthens Apollo’s 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 globally.

 

Co-President of Apollo Asset Management Jim Zelter said: “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. Further enhancing our ability to originate investment opportunities that offer strong risk-adjusted returns is our top priority amid unprecedented demand for large-scale, customised 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.”

 

Aligned investment philosophy

Omar Eraiqaat, Deputy CEO 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.”

 

At the firm’s Investor Day in October, Apollo announced a new target of reaching $275 billion of annual origination volumes in the next five years. The firm believes it is uniquely positioned to address the financing needs of large, high quality corporate borrowers while serving as a key capital provider supporting areas including the clean energy transition, power & utilities and digital infrastructure.

Eric Needleman, Partner and Head of Apollo Capital Solutions, said: “Mubadala is among the most sophisticated alternative investors globally, and their continued support of our origination and Capital Solutions business positions us to capitalize on a growing global opportunity set as corporate borrowers increasingly recognise the value of private financing solutions.”

 

“Mubadala and Apollo have a long-standing and mutually beneficial strategic relationship. Within the credit sector, our partnership commenced more than nine years ago in direct lending,” said Fabrizio Bocciardi, Head of Credit Investments at Mubadala. “This partnership has expanded over time across other private debt asset classes driven by Apollo’s innovative capital solutions and our partnership-oriented approach.”

 

The partnership extension builds on several recent strategic collaborations between Apollo and Mubadala. The firms formed a $2.5 billion joint venture to co-invest in global private credit opportunities, and Mubadala supported Apollo’s launch of a 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.--TradeArabia News Service