The Committee on Foreign Investment in the United States approved the sale of a majority stake in Fortress, which manages assets worth $48 billion, to Mubadala.
newspaper quoted ”Financial Times“ Informed sources said that it was offered ”Mubadala Capital“ With a value of $3 billion to acquire a majority stake in the American company Fortress Investment Group, it overcame a major regulatory hurdle, after the parties to the deal agreed to major concessions.
The Committee on Foreign Investment in the United States approved the sale of a majority stake in Fortress, which manages assets worth $48 billion, to Mubadala, one of the companies of the Abu Dhabi government’s Mubadala Investment Fund.
As part of the concessions, Mubadala agreed to allow Fortress Investment Group to keep data and technology within the United States, in addition to a previous pledge to relinquish day-to-day supervision of Fortress. The sources indicated that the new concession comes at a time when Washington is increasingly focusing on protecting American intellectual property, including cybersecurity software and data algorithms.
The deal would push Mubadala into the ranks of the world’s largest credit investors.
Sovereign wealth funds such as Mubadala are increasingly seeking to strengthen relationships with the largest and most successful American investment groups, which in turn seek to attract investments from the Middle East.
Mubadala had concluded an agreement with Fortress in May 2023 to purchase 90% of the shares owned by the Japanese group SoftBank in the American asset management company. Under the agreement, the Emirati company will own a 70% stake in Fortress, while Fortress management will retain a 30% stake, and a class of shares that will enable it to appoint the majority of the members of the Board of Directors.
However, the deal was subject to review by the Foreign Investment Committee in late July, amid concerns about the UAE’s relations with China, and the US Treasury Department indicated at the time its commitment to taking all necessary measures within its authority to protect US national security.
Mubadala owns a minority stake in the American technology private equity group Silver Lake, and has established significant lending and investment partnerships with Apollo Global.
