In one of the most intriguing financial announcements of 2025 so far, investment holding company TWG Global has revealed a multi-faceted, multi-billion-dollar investment alliance with Mubadala Capital, the asset management arm of Abu Dhabi sovereign wealth fund Mubadala Investment Company.
This deal is remarkable not just for its sheer scale—anchored by a US$10 billion syndicated investment and a US$2.5 billion mutual capital commitment—but for what it signals about the evolving relationship between private equity (PE) and sovereign wealth funds (SWFs).
This marks a new chapter in global finance: a private investment firm acquiring a minority equity stake in a sovereign wealth fund’s asset management platform. That’s almost unheard of.
TWG Takes a Stake: Unpacking the Structure
While sovereign wealth funds have historically acted as limited partners (LPs) in private equity funds—allocating capital to funds managed by groups like BlackRock, Ardian, or KKR—TWG’s minority acquisition of a stake in Mubadala Capital itself signals a reversal of roles. In most previous cases, Mubadala Capital functioned as a GP (general partner) raising capital from LPs like US pensions or sovereign peers, while retaining 100% ownership under its parent, Mubadala Investment Company. TWG’s entry as an equity partner in the manager upends that structure.
This isn't just a token gesture or strategic partnership; it’s part of TWG’s broader $15 billion equity raise, in which Mubadala Capital is anchoring $10 billion. It’s a deeply reciprocal move—TWG is also committing $2.5 billion into Mubadala Capital-managed products, with an ambition to scale up to $20 billion in future co-investments across sectors.
Sports, AI, and Global Alternatives: Strategic Alignments
What’s especially compelling is the sectoral overlap between the two entities with TWG Global bringing a portfolio rich in sports franchises, such as the LA Dodgers, Lakers, and Chelsea FC, as well as stakes in Guggenheim Investments and Palantir-related AI ventures. Mubadala Capital, for its part, has been actively acquiring sports media assets and mid-market entertainment companies through its MIC Capital Partners funds.
This partnership gives Mubadala indirect ownership exposure to iconic Western sports franchises - a savvy move amid the rising valuation of global sports assets and the convergence of content, fan engagement, and streaming monetization. It also cements Mubadala’s push into US alternative assets at a time when American political ties with the UAE are being reinforced post-Trump’s 2024 re-election.
Through TWG, Mubadala is gaining the sports and leisure exposure that its Saudi peer, the Public Investment Fund (PIF), has had to build from scratch, originating its own direct investments.
Implications for Sovereign Wealth Capitalism
This deal reveals a subtle but transformative evolution in sovereign wealth capitalism. SWFs like Mubadala are no longer passive allocators chasing returns, they are now dynamic builders of asset management empires. Mubadala Capital already manages over US$27 billion in third-party capital, having doubled that base in just three years. Through high-profile acquisitions (e.g., Fortress Investment Group, CI Financial) and new platforms like Mubadala Capital Solutions (MCS), it’s on a path similar to other SWFs like Temasek, which now operates platforms that manage third-party capital.
Mubadala Capital, the asset management arm of Abu Dhabi’s sovereign wealth powerhouse, has quietly become one of the most influential players in global alternatives. Originally spun out to manage third-party capital, it is rapidly scaling through bold acquisitions and deep partnerships. In just the past year, it bought Fortress Investment Group from SoftBank for US$3 billion, taking control of nearly US$50 billion in AUM, and followed up with a C$12.1 billion ($8.66 billion) all-cash deal to privatize CI Financial, giving it a springboard to grow U.S. operations under the Corient brand.
But Mubadala isn’t just buying, it’s building. Its ongoing multi-billion-dollar collaboration with Apollo has produced new private credit ventures, evergreen strategies, and joint origination platforms. Through its joint venture Abu Dhabi Catalyst Partners, Mubadala has also seeded private equity funds like Investindustrial’s EUR15 billion growth-focused vehicle, helping develop Abu Dhabi’s Global Market as a finance hub. From co-investing with Ares, KKR, and Blue Owl to partnering with Ardian and BlackRock on multi-billion dollar portfolios, Mubadala Capital has positioned itself not only as a sovereign investor but as a full-spectrum asset manager and dealmaker - one that's now being courted by the same institutions it used to back.
This TWG-Mubadala structure extends that ambition. By inviting a private investor to take a minority stake in its manager, Mubadala Capital is enhancing alignment with TWG’s capital now directly tied to Mubadala’s success as a manager, not just as a product user. An equity commitment from an experienced PE sponsor like TWG also reinforces Mubadala Capital’s brand and market positioning. Mubadala can now tap TWG’s deep US network across finance, sports, AI, and energy to exploit new opportunities.
A New Trend?
This structure could be the start of a trend. Sovereign wealth funds are sitting on vast pools of capital but increasingly want to earn fees on top of returns. Mubadala was the first SWF to manage capital for external investors. Now, with TWG’s investment, it's also demonstrating that SWFs themselves can become investable businesses.
For private equity firms, especially those looking for long-duration capital, this opens an entirely new playbook. Partnering with SWFs not just as LPs, but as co-owners in GP platforms, aligns incentives and facilitates large-scale joint strategies across verticals.
Other SWFs like Singapore’s Temasek (via Seviora) and Saudi Arabia’s PIF (via its Sanabil arm) may take note. They, too, may find strategic advantage in selling non-controlling stakes in their growing asset management platforms, while simultaneously using such partnerships to expand into new geographies or asset classes like private credit, infrastructure, or AI.
At its heart, the TWG–Mubadala Capital alliance reflects a broader convergence underway in the global investment ecosystem. Capital-rich SWFs want more operational influence and diversified income streams. Visionary PE sponsors want scale, access, and political capital in an increasingly fragmented and multipolar world
Will we see Blackstone, KKR, or Brookfield follow suit in reverse? Or more sovereign funds open to giving up equity for synergy? One thing is clear: the lines between allocator, manager, and owner are blurring fast. And TWG–Mubadala may be the bellwether.
