– Mubadala Capital and Fortress Investment Group have completed the acquisition of a 90.01% stake in Fortress previously held by SoftBank Group, with Mubadala now owning 68% and Fortress management retaining 32% of the equity.

– Under the new ownership structure, Fortress plans to strengthen its position as a leader in the alternative investment space, managing over $48 billion in assets for approximately 2,000 institutional investors and private clients.

– The transaction saw Ardea Partners and Shearman & Sterling LLP advising Mubadala, while Goldman Sachs & Co. LLC and Kirkland & Ellis advised Fortress senior management, and Skadden, Arps, Slate, Meagher & Flom LLP represented Fortress.

Abu Dhabi sovereign investor Mubadala Capital and New York-based Fortress Investment Group (Fortress) have finalized the buyout of a 90.01% stake in Fortress previously held by SoftBank Group. With the deal’s closure, a consortium led by Mubadala now holds 68% of Fortress equity, while Fortress management retains 32%.

Last year, Mubadala and Fortress Investment entered into definitive agreements to acquire most of Fortress’s equity. SoftBank had owned Fortress since 2017, with Mubadala previously holding a 9.99% stake through its Private Equity Funds II and III. Under the new joint ownership, Fortress aims to further establish itself as a leader in the alternative investment space. Fortress currently manages over $48 billion in assets for around 2,000 institutional investors and private clients.

Fortress management will appoint a majority of the board seats. The firm expects to benefit from Mubadala Capital’s global network and diversified asset portfolio. Hani Barhoush, Mubadala Capital’s CEO and Managing Director, who has served on Fortress’s board since 2019, will continue his role.

“Looking ahead, we are confident that collectively, we will unlock significant value creation opportunities and deliver superior risk-adjusted returns to our investors and to Fortress’s stakeholders,” Barhoush said.

Ardea Partners served as financial advisor and Shearman & Sterling LLP (now A&O Shearman) served as legal counsel to Mubadala. Goldman Sachs & Co. LLC served as financial advisor and Kirkland & Ellis as legal counsel to Fortress senior management. Skadden, Arps, Slate, Meagher & Flom LLP represented Fortress in the transaction.