Mubadala and Fortress to Invest $1B in Private Credit and Real Estate

Abu Dhabi’s Mubadala Investment Company and U.S.-based Fortress Investment Group have entered into a strategic partnership to invest $1 billion across private credit, asset-based lending, and real estate opportunities globally.

The investment, to be deployed through Mubadala Capital — the asset management arm of Mubadala — will be directed toward Fortress’s existing credit strategies, targeting sectors such as middle-market lending, distressed debt, and real estate finance. This initiative builds on Mubadala Capital’s recent acquisition of a 68% stake in Fortress, finalized in May 2024, while Fortress's management retains a 32% share and continues to lead daily operations.

The partnership reflects the growing global appetite for private credit as regulatory pressures and economic volatility limit traditional bank lending.

Omar Eraiqaat, Deputy CEO of Credit Investments at Mubadala, emphasized the importance of the new initiative: "Private credit continues to play an increasingly vital role in global capital markets. This partnership represents a unique opportunity to invest alongside one of the industry's most experienced teams to deliver attractive, risk-adjusted returns for our investors."

Fabrizio Bocciardi, Head of Credit Investments at Mubadala, echoed this sentiment, stating: "The opportunity set in private credit today is among the most compelling we've seen in over a decade. Partnering with Fortress, a firm with a long and successful track record in asset-based investing, will allow us to capitalize on this market shift."

Fortress, with approximately $50 billion in assets under management, is poised to leverage this new capital to expand its lending and real estate investment strategies across North America, Europe, and Asia.

The $1 billion deployment will strengthen both firms' ability to provide flexible financing solutions, particularly in sectors underserved by traditional banking institutions.

The Mubadala-Fortress partnership underscores Mubadala’s strategic push into alternative assets and positions Fortress to further grow its global footprint at a time when demand for private credit continues to surge.