Abu Dhabi's Mubadala Investment Co., has signed "definitive agreements" to acquire 90.01% of the equity of Fortress Investment Group from SoftBank Group Corp.

Terms of the deal were not disclosed, and the deal is subject to customary closing conditions and regulatory approvals, the sovereign fund said in a statement on Monday.

Fortress currently manages $46 billion of assets invested in the alternative investment space, particularly in credit and real estate across public and private markets.  

Once the deal is closed, Fortress management is expected to own a 30% equity interest in the company and will hold a class of equity entitling Fortress management to appoint a majority of seats on the board.

Mubadala Capital, wholly owned asset management subsidiary of Mubadala Investment, which currently holds a 9.99% stake in Fortress through its Private Equity Funds II and III, will own 70% of Fortress equity.

Also, after the close, Fortress will continue to operate as an independent investment manager under the Fortress brand, with full autonomy over investment processes and decision making, personnel and operations.

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.

The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.

(Writing by Brinda Darasha; editing by Seban Scaria)