Athene Announces $2 Billion First Close For Apollo / Athene Dedicated Investment Program II

Rhea-AI Summary

Athene Holding Ltd. announced a first close for the Apollo/Athene Dedicated Investment Program II (ADIP II) with $2 billion in capital commitments. This new fund aims to enhance Athene's growth by investing directly alongside Athene into ACRA 2, its reinsurance subsidiary. Building on ADIP I's success, which featured over $60 billion in assets, ADIP II's strong investor demand highlights its portfolio differentiation and performance. With access to over $7 billion in deployable capital, Athene plans to pursue growth opportunities in retirement services, underscoring the effective partnership with Apollo post-merger.

Positive

• ADIP II achieved $2 billion in capital commitments, indicating strong investor interest.
• Athene has access to over $7 billion in deployable capital for growth opportunities.
• The program builds on the successful track record of ADIP I, which managed over $60 billion in assets.

Negative

• None.

HAMILTON, Bermuda, Feb. 09, 2023 (GLOBE NEWSWIRE) -- Athene Holding Ltd. (“Athene”) today announced a first close for Apollo / Athene Dedicated Investment Program II (“ADIP II”) with approximately $2 billion in capital commitments. ADIP II is the second vintage of the innovative sidecar program formed to augment Athene’s growth capacity through long-term, on-demand capital. Funds from ADIP II will be invested directly alongside Athene into Athene Co-Invest Reinsurance Affiliate Holding 2 Ltd. (“ACRA 2”), a consolidated subsidiary of Athene, which is managed to the same risk, investment, and capital standards as Athene.

ADIP II builds on the success of the franchise’s first vintage, ADIP I, which supported ACRA 1 beginning in 2019, as it scaled to become a leading reinsurance platform with over $60 billion of assets and an ‘A+/A1’ rating by S&P, Fitch and Moody’s. ADIP I serves as strong proof of concept for the strategy, leveraging both Athene’s ability to source attractive, persistent, spread-based liabilities and Apollo’s experience in delivering superior asset management across market cycles.

The strong investor demand for ADIP II is a testament to the strategy’s differentiation within investors’ portfolios, performance with downside protection, and significant alignment between Apollo, Athene, and third-party investors.

With this first close, and including excess equity capital and untapped debt capacity, it is anticipated that Athene will have access to over $7 billion of deployable capital to pursue attractive growth opportunities in the retirement services marketplace. The significant opportunity across Athene’s diverse, multi-channel organic and inorganic origination engine enables Athene to be nimble and pivot opportunistically across channels, focusing on the most attractive opportunities.

“The strategic partnership between Athene and Apollo only continues to get stronger, with full alignment achieved following the merger in early 2022 and significant profitable growth aspirations ahead,” said Athene CEO Jim Belardi. “We continue to believe that funding a significant amount of our growth with participation from private, long-term third-party capital is a win-win scenario for our business and our investors, and we are excited about the road ahead.”

About Athene

Athene, through its subsidiaries, is a leading financial services company specializing in retirement services with total assets of $246 billion as of December 31, 2022 and operations in the United States, Bermuda, and Canada. Athene specializes in helping its customers achieve financial security and is a solutions provider to institutions. Founded in 2009, Athene is Driven to Do More for our policyholders, business partners, shareholders, and the communities in which we work and live. For more information, please visit www.athene.com.

Forward-Looking Statements

This press release contains, and certain oral statements made by Athene's representatives from time to time may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results, events and developments to differ materially from those set forth in, or implied by, such statements. These statements are based on the beliefs and assumptions of Athene's management and the management of Athene's subsidiaries. Generally, forward-looking statements include actions, events, results, strategies and expectations and are often identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” "should," or “continues” or similar expressions. Forward-looking statements within this press release include, but are not limited to, statements regarding future growth prospects and financial performance. Factors that could cause actual results, events and developments to differ include, without limitation: the accuracy of Athene's assumptions and estimates; Athene's ability to maintain or improve financial strength ratings; Athene's ability to manage its business in a highly regulated industry; regulatory changes or actions; the impact of Athene's reinsurers failing to meet their assumed obligations; the impact of interest rate fluctuations; changes in the federal income tax laws and regulations; the accuracy of Athene's interpretation of the Tax Cuts and Jobs Act; litigation (including class action litigation), enforcement investigations or regulatory scrutiny; the performance of third parties; the loss of key personnel; telecommunication, information technology and other operational systems failures; the continued availability of capital; new accounting rules or changes to existing accounting rules; general economic conditions; Athene's ability to protect its intellectual property; the ability to maintain or obtain approval of the Delaware Department of Insurance, the Iowa Insurance Division and other regulatory authorities as required for Athene's operations; and other factors discussed from time to time in Athene's filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2021, its quarterly report on Form 10-Q for the quarter ended September 30, 2022 and its other SEC filings, which can be found at the SEC’s website www.sec.gov. All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. Athene does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Contacts

Investors
Alex Pelzar
+1 917 472 4186
apelzar@apollo.com

Media
Kelly Woerdehoff
+1 515 342 5144
kwoerdehoff@athene.com 

FAQ

What is the purpose of the ADIP II program for Athene Holding Ltd.?

ADIP II aims to support Athene's growth by providing long-term capital through investor commitments.

How much capital has been committed to the ADIP II program?

Athene has announced approximately $2 billion in capital commitments for ADIP II.

What is Athene's total deployable capital with ADIP II?

Athene will have access to over $7 billion of deployable capital after the first close of ADIP II.

What is the significance of the ADIP I program in relation to ADIP II?

ADIP I has set a precedent for ADIP II by demonstrating successful capital management with over $60 billion in assets.

How does the partnership with Apollo benefit Athene Holding Ltd.?

The partnership enhances Athene's growth prospects and aligns interests between Apollo, Athene, and third-party investors.