ADIA Backs Apollo’s Sponsor and Secondary Solutions Business with Major Commitment

Posted on 08/05/2022

Apollo Management (NYSE: APO) had a formal launch of its Sponsor and Secondary Solutions business, S3, which provides flexible capital solutions to asset managers and limited partners across the yield, hybrid and equity spectrum. Apollo announced that Abu Dhabi Investment Authority (ADIA) has made, through a wholly owned subsidiary, a cornerstone commitment to S3. This brings total new commitments for S3 to approximately US$ 4 billion, including affiliated capital. Together, Apollo and ADIA see a significant and growing opportunity set across private market secondary transactions and lending that can be served through S3.

S3, an extension of Apollo’s global investment platform, offers a comprehensive set of secondary and fund finance capital solutions, including private equity, credit, and real asset secondary investments, net asset value (NAV) loans, GP lending, staking and more. Apollo has already been highly active in these solutions to-date, committing or deploying more than US$ 13 billion of capital to transactions of this nature over the last 12 months.

S3 will look to build upon Apollo’s significant momentum and recent transactions such as its US$ 5.1 billion NAV loan to Softbank Group Corporation – estimated to be one of the largest-ever private fund financings. The loan is secured by SoftBank’s US$ 40 billion Vision Fund 2. Softbank pledged some of its stakes in technology companies for the loan. Apollo’s insurance affiliate Athene Holding Ltd and other mutual funds, endowments, and financial institutions provided capital to the loan.

Apollo also led Behrman Capital’s US$ 500 million continuation fund for Micross Components. Apollo expects its experience in navigating volatility to underwrite long-term investments will be particularly meaningful in current and future periods of market dislocation.

Apollo continues to invest in the team behind S3, most recently hiring Veena Isaac, Steve Lessar and Konnin Tam as Partners to co-lead hybrid and equity secondary solutions for the S3 business. In 2021, Olga Kosters joined Apollo as a Managing Director focused on credit secondary solutions, and Jasen Yang joined as a Managing Director focused on fund finance and other structured lending solutions.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Apollo for the transaction and establishment of S3.

Keywords: Apollo Global Management Inc., Apollo Management.

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