Details of the transaction have not been announced and completion is subject to satisfaction of conditions and receipt of customary regulatory approvals.
Once the deal closes, Fortress management is expected to own a 30% stake in the company and acquire a class of shares that gives it the right to appoint the majority of seats on the board.
Mubadala Capital, which currently owns 9.9% of Fortress through its private equity funds 2 and 3, will acquire 70% of Fortress.
Fortress will continue to act as an independent investment manager under the Fortress brand, with full control over investments, decision-making, personnel and operations.
Under the new co-ownership arrangements, Fortress is expected to generate significant value for its shareholders by strengthening its position in alternative investments, particularly credit and real estate in the public and private investment markets, where it currently manages assets worth $46 billion on behalf of over 1,900 institutional investors and private clients.
Fortress is expected to benefit from Mubadala Capital’s global network and diverse portfolio of assets, as well as its ability to leverage internal investment opportunities to support its growth and expansion.
“We are delighted to strengthen our relationship with Mubadala as one of the world’s leading investment firms and to enter into a partnership that will bring significant long-term benefits to our company,” said Pete Breger, Chairman of the Board of Directors and Drew McKnight. and Joshua Buck, co-CEO of Fortress, in a joint statement. We have worked with Mubadala for years, and we have great admiration for his abilities in the field of investment, and we believe that their agreement to invest more with us indicates their belief in the investment approach that we have followed since over 20 years. We now look with great optimism to the future that awaits Fortress, in particular And that market conditions and transformations are now more compatible than ever with our experiences.
For his part, Hani Barhoush, CEO and Managing Director of Mubadala Capital, said, “Fortress is a leading global investment management firm with a remarkable track record in delivering significant and balanced returns for its investors. over the past twenty years, the firm has been able to establish a reputable brand and consolidate its position as a leading credit and asset investor, while at the same time working to develop investment strategies across a broad range of asset classes. We have a close relationship with the distinguished management team at Fortress, and we look forward to building on this relationship in the years to come based on our shared vision and working with us to achieve a greater value for investors”.
This transaction is expected to close in the first quarter of 2024, subject to obtaining regulatory approvals.
Read the Latest World News Today on The Eastern Herald.
