PE Deals

Fortress and Mubadala to acquire SoftBank’s majority stake in Fortress

When the deal closes, Fortress management is expected to own a 30% equity stake in the company while Mubadala Capital will own a 70% stake.

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  • SoftBank has owned Fortress since 2017
  • The transaction is expected to close in the first quarter of 2024
  • Ardea Partners served as financial advisor to Mubadala while Goldman Sachs served as financial advisor to Fortress senior management in the transaction

Fortress Investment Group and Mubadala Investment Company have agreed to acquire a majority stake in Fortress that is currently being held by SoftBank. No financial terms were disclosed.

When the deal closes, Fortress management is expected to own a 30 percent equity stake in the company while Mubadala Capital will own a 70 percent stake.

SoftBank has owned Fortress since 2017.

Also, after the close, Drew McKnight and Joshua Pack will be appointed co-CEOs of Fortress and Pete Briger will be appointed chairman. Mubadala Capital’s CEO and managing director, Hani Barhoush, who has served on Fortress’ board since 2019, will continue to serve on the board.

Dean Dakolias will continue in his role as managing partner and Tom Pulley will continue in his role as the CEO of the global Fortress real estate business. Jack Neumark has been appointed a managing partner and will continue to lead the legal assets business and co-head the specialty finance business, and Marc Furstein will continue in his role as president.

Fortress co-founders Wes Edens and Randy Nardone will continue to oversee the PCV business and remaining PE investments, including Brightline.

On the deal, Hani Barhoush, CEO and managing director of Mubadala Capital, said in a statement: “Fortress is a world-leading investment manager with a proven track record of delivering superior risk-adjusted returns to its investors throughout business cycles. Over the last 20 years, they have built an incredible franchise and established themselves as a premier credit and asset investor while simultaneously growing investment strategies across a wide range of asset classes.”

The transaction is expected to close in the first quarter of 2024.

Ardea Partners served as financial advisor to Mubadala while Goldman Sachs served as financial advisor to Fortress senior management in the transaction.

The Raine Group served as exclusive financial advisor to SoftBank.

Founded in 1998, Fortress manages $45.8 billion of assets under management as of December 31, 2022.

Mubadala Capital is the asset management subsidiary of Mubadala Investment Company, a a sovereign investor headquartered in Abu Dhabi.