#AbuDhabi's Mubadala to buy majority stake in Fortress Investment from SoftBank | Reuters

Abu Dhabi's Mubadala to buy majority stake in Fortress Investment from SoftBank | Reuters

Abu Dhabi's Mubadala Investment Co will acquire a majority stake in U.S. asset manager Fortress Investment Group from Japan's SoftBank Group Corp (9984.T).

Financial terms of the deal were not disclosed, Mubadala and Fortress Investment said in a joint statement on Monday.

SoftBank, which acquired Fortress in 2017 for $3.3 billion, had been offloading assets to shore up its balance sheet as the value of its tech portfolio falters.

The Japanese tech conglomerate, which posted a $7.18 billion net loss for the year ended March 31, has sold assets including its stake in Chinese e-commerce giant Alibaba Group Holding Ltd (9988.HK).

After the completion of the deal, Fortress' management will own a 30% stake in the company, while Mubadala Capital will hold the rest, according to the statement. Mubadala already owns 10% of Fortress. Fortress management will hold a class of equity that entails it to appoint a majority of seats on the board.

Fortress will appoint Drew McKnight and Joshua Pack as co-CEOs and Pete Briger as chairman, the companies said.