Apollo Announces Formal Launch of Sponsor and Secondary Solutions Business, “S3”, with Cornerstone Commitment from ADIA

Rhea-AI Summary

Apollo has launched its new Sponsor and Secondary Solutions business, S3, with approximately $4 billion in new commitments, including a cornerstone investment from ADIA. This initiative aims to provide flexible capital solutions across the yield, hybrid, and equity spectrum, responding to evolving market needs. S3 complements Apollo's existing capital solutions, having already deployed over $13 billion in related transactions over the past year. The company continues to expand its team to strengthen S3's operations and enhance service offerings in private market transactions.

Positive

• Launch of S3 with approx. $4 billion in commitments including ADIA investment.
• Expansion of capital solutions services, covering private equity, credit, and asset finance.
• Previously deployed over $13 billion in relevant transactions in the last year.
• Strengthened management team for S3 with new key hires.

Negative

• None.

Apollo S3 launches with approx. $4 billion in new commitments

NEW YORK, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced the 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 also announced that ADIA, a globally diversified investment institution and long-term partner to the firm, has made, through a wholly owned subsidiary, a cornerstone commitment to S3. This brings total new commitments for S3 to approx. $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 holistically served through S3.

S3, a natural 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 $13 billion of capital to transactions of this nature over the last 12 months. With the launch of S3, Apollo establishes a dedicated, client-oriented business for these solutions, with operational protocols that provide additional information safeguards.

Apollo Co-Presidents Scott Kleinman and Jim Zelter said, “As private capital markets continue to grow, mature and evolve, so too do the needs of market participants. We believe Apollo is well positioned to provide a holistic suite of flexible, expedient solutions across this landscape.”

They continued, “We are equally pleased to launch S3 in partnership with ADIA, one of the world’s leading institutional investors, who are aligned with our capital and vision. We expect S3 can become the go-to platform for the vast and growing needs of asset managers and investors across private market secondaries, fund finance and other liquidity solutions.”

S3 will look to build upon Apollo’s significant momentum and recent transactions such as its $5.1 billion NAV loan to Softbank Group – estimated to be one of the largest-ever private fund financings – and leading Behrman Capital’s $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.

About Apollo

Apollo is a global, high-growth alternative asset manager. In the asset management business, Apollo seeks to provide its clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, Apollo’s investing expertise across its fully integrated platform has served the financial return needs of its clients and provided businesses with innovative capital solutions for growth. Through Athene, Apollo’s retirement services business, it specializes in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Apollo’s patient, creative, and knowledgeable approach to investing aligns its clients, businesses it invests in, its team members, and the communities it impacts, to expand opportunity and achieve positive outcomes. As of March 31, 2022, Apollo had approximately $513 billion of assets under management. To learn more, please visit www.apollo.com.

Forward-Looking Statements

This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the performance of its business, liquidity and capital resources and the other non-historical statements. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this press release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “will,” “should,” “could,” or “may,” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. These statements are subject to certain risks, uncertainties and assumptions, including but not limited to those described under the section entitled “Risk Factors” in Apollo's Quarterly Report on Form 10-Q filed with the United States Securities and Exchange Commission (“SEC”) on May 10, 2022, as such factors may be updated from time to time in Apollo’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in Apollo’s filings with the SEC. Apollo undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This press release does not constitute an offer of any Apollo fund.

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

FAQ

What is the Apollo S3 business launched on August 4, 2022?

Apollo S3 is a new business focusing on providing flexible capital solutions across yield, hybrid, and equity markets, launched with approximately $4 billion in commitments.

Who made a cornerstone commitment to Apollo S3?

ADIA, a globally diversified investment institution, made a cornerstone commitment to Apollo's S3 initiative.

How much capital has Apollo deployed in private market transactions recently?

Apollo has deployed over $13 billion in private market transaction solutions in the past year.

What does S3 offer to asset managers and investors?

S3 provides a comprehensive set of secondary and fund finance capital solutions, including private equity, credit, and real asset investments.

How does Apollo plan to position S3 in the market?

Apollo aims for S3 to become the go-to platform for private market secondaries, fund finance, and liquidity solutions.