- The sovereign wealth fund of Abu Dhabi, and Fortress Investment Group reached an agreement to acquire 90% of the equity shares owned by Japanese conglomerate SoftBank Group in the US-based asset management firm. As per the deal, Mubadala will hold a 70% stake in Fortress, while the remaining 30% will be retained by Fortress management.
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Following the completion of the deal, Fortress will maintain its status as an independent investment manager. Drew McKnight and Joshua Pack will assume the roles of co-CEOs, while Pete Briger will take on the position of chairman. The specific terms of the agreement were not disclosed, but according to Bloomberg News, the potential valuation of the company could exceed $2 billion.
Why it matters
Abu Dhabi, with over $1 trillion in sovereign wealth, aims to extend its global influence by diversifying its economy through substantial investments. SoftBank acquired Fortress in 2017 to leverage its expertise for the Vision Fund, while Mubadala became a significant investor in the fund.
