Apollo and Belstar to Form Private Credit Joint Venture in Korea

Rhea-AI Summary

Apollo (NYSE: APO) and Belstar Group have formed a 50/50 joint venture in Korea to provide a variety of private credit solutions. This partnership aims to address the liquidity gap in the Korean market by offering asset-backed capital solutions, corporate lending, and acquisition financing. Apollo will leverage its $10 billion Asia Pacific assets under management and recent market insights to establish a long-term presence in Korea. The joint venture is an extension of Apollo’s credit investment strategy in the Asia Pacific region.

Positive

• Establishment of a 50/50 joint venture with Belstar Group to enhance private credit solutions in Korea.
• Aims to address liquidity gaps in the Korean market, potentially increasing demand for private lending.
• Supports Apollo's strategic extension in the Asia Pacific region, backed by $10 billion in assets.

Negative

• None.

NEW YORK and SEOUL, South Korea, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) and Belstar Group announced they have agreed to establish a 50/50 joint venture in Korea to provide a wide range of private credit solutions, bringing together the capabilities of Apollo’s global credit platform with Belstar’s longstanding expertise in investing and partnering with corporates and institutions in Korea.

The joint venture intends to provide large corporations, mid-sized enterprises and sponsors in Korea with asset-backed capital solutions, corporate lending and acquisition financing. In providing private lending solutions, in addition to the traditional financing sources in place today, the joint venture will look to address a liquidity gap borrowers face in the market. The joint venture is a strategic extension of Apollo’s credit investment franchise in the Asia Pacific region and will support Apollo’s recently established Asia Pacific Credit Strategy. The investment program in Korea will be anchored by Apollo’s funds and its internal and affiliated insurance balance sheets, focusing on providing flexible and differentiated capital across the yield and duration spectrums.

Matt Michelini, Partner and Head of Asia Pacific at Apollo, commented, “We have been exploring the market opportunity in Korea with a heightened degree of interest for several years, and are delighted to partner with Belstar to address the market need for alternative forms of liquidity and credit in Korea. We are optimistic this joint venture will serve as a starting point for Apollo's long-term presence in Korea.”

“Together with Apollo, we are helping Korea transition from a primarily bank-financed market to a market with alternative sources of credit enabled by the 2021 amendments to the Capital Markets Act,” said Daniel Yun, Chairman and Managing Partner of Belstar. “We are pleased to partner with Apollo and deliver their leading credit expertise to further develop the capital markets in Korea.”

Apollo has more than $10 billion¹ of assets under management invested in the Asia Pacific region and a growing team of nearly 60 investment professionals. Last year, Apollo appointed Partner Matt Michelini as Head of Asia Pacific, now based in Singapore, and Partner Anthony Hermann as Head of Asia Pacific Credit, among other key additions. Globally, Apollo has approximately $376 billion of yield assets under management and total assets under management of approximately $515 billion, as of June 30, 2022.

Belstar is a credit-oriented alternative investment manager, primarily investing on behalf of institutional investors based in Korea, with a 15-year track record in global corporate and structured credit markets. Belstar has a unique history of delivering advanced investment propositions, including establishing one of the first foreign funds to register with the Financial Supervisory Services of Korea.

About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2022, Apollo had approximately $515 billion of assets under management. To learn more, please visit www.apollo.com.

About Belstar Group
Since 1998, Belstar and EMP Belstar have specialized in credit and private equity investments. Belstar Management Company is an SEC registered Investment Advisor. Currently, Belstar has over $2 billion in assets under management. Historically, Belstar has raised and invested over $4 billion of credit-dedicated capital. Belstar’s corporate offices are located in New York, Seoul, and Singapore. To learn more, please visit www.empbelstar.com.

Apollo Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

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¹ APAC-based assets as of 3/31/22 with pro forma inclusion of commitment to Mumbai International Airport Ltd.

FAQ

What is the recent joint venture between Apollo and Belstar Group about?

Apollo and Belstar Group have formed a 50/50 joint venture in Korea, focusing on providing private credit solutions to tackle market liquidity gaps.

How does the new venture affect Apollo's strategy in the Asia Pacific?

The joint venture is a strategic extension of Apollo's credit investment franchise in the Asia Pacific, supporting its recently established Asia Pacific Credit Strategy.

What types of financial solutions will the joint venture offer?

The joint venture will provide asset-backed capital solutions, corporate lending, and acquisition financing to large corporations and mid-sized enterprises in Korea.

What is Apollo's asset management scale in the Asia Pacific region?

As of now, Apollo has over $10 billion of assets under management invested in the Asia Pacific region.

What does the partnership aim to achieve in the Korean capital markets?

The partnership aims to transition Korea from a bank-financed market to one with alternative credit sources, enhancing the capital markets.