Profile: Apollo Global Management LLC (APO)
2 Sep 2015
Apollo Global Management, LLC, incorporated on July 3, 2007, is an investment manager in private equity, credit and real estate. The Company raises, invests and manages funds on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. As of December 31, 2014, the Company had total asset under management (AUM) of $160 billion, including approximately $41 billion in private equity, $108 billion in credit and $10 billion in real estate. The Company operates through three segments: Private equity, Credit and Real estate.
The Private equity segment primarily invests in control equity and related debt instruments, convertible securities and distressed debt instruments. The Credit segment primarily invests in non-control corporate and structured debt instruments. The Real estate segment primarily invests in real estate equity for the acquisition and recapitalization of real estate assets, portfolios, platforms and operating companies, and real estate debt including first mortgage and mezzanine loans, preferred equity and commercial mortgage backed securities.
The Private Equity segment includes Distressed Buyouts and Debt Investments, Corporate Carve-outs, Opportunistic Buyouts and Natural Resources. The distressed securities its funds purchase include bank debt, public high-yield debt and privately held instruments. The Company also manages AP Alternative Assets, L.P. (AAA), a permanent capital vehicle. The sole investment held by AAA is its investment in AAA Investments, L.P. (AAA Investments). AAA Investments is the equity holder of Athene Holding.
The credit segment includes the United States Performing Credit, Structured Credit, Opportunistic Credit, Non-performing Loans, European Credit, and Athene. As of December 31, 2014, the company’s credit segment had total AUM and Fee-Generating AUM of $108.4 billion and $92.2 billion, respectively, across a range of credit-oriented investments.
United States Performing Credit group provides investment management services to funds, including strategic investment accounts (SIAs), which primarily focus on income-oriented, senior loan and bond investment strategies. The United States Performing Credit group also includes collateralized loan obligations (CLOs) that it raises and manages internally. As of December 31, 2014, its United States Performing Credit group had total AUM and Fee-Generating AUM of $24.9 billion and $20.0 billion, respectively.
The structured credit group provides investment management services to funds, including SIAs, which primarily focus on structured credit investment strategies that target multiple tranches of structured securities with lending terms, predictable payment schedules, portfolios, and historical defaults, among other characteristics. These strategies include investments in externally managed CLOs, residential mortgage-backed securities, asset-backed securities and other structured instruments, including insurance-linked securities and longevity-based products. The structured credit group also serves as substitute investment manager for a number of asset-backed CDOs and other structured vehicles. As of December 31, 2014, its structured credit group had total AUM and Fee-Generating AUM of $16.0 billion and $11.0 billion, respectively.
The opportunistic credit group provides investment management services to funds, including SIAs, which primarily focus on credit investment strategies that are often less liquid in nature and that utilize a similar value-oriented investment philosophy as its private equity business. The opportunistic credit funds and SIAs invest in an array of primary (including origination)and secondary opportunities encompassing performing, stressed and distressed public and private securities primarily within corporate credit, including senior loans (secured and unsecured), high yield, mezzanine, debtor in possession financing, rescue or bridge financings, and other debt investments. Additionally, certain opportunistic credit funds will selectively invest in aircraft, shipping assets, energy and structured credit investment opportunities. In certain cases, leverage can be employed in connection with these strategies by having fund subsidiaries or special-purpose vehicles incur debt or by entering into credit facilities or other debt transactions to finance the acquisition of various credit investments. Additionally, certain opportunistic credit funds will selectively purchase assets, including aircraft and shipping, as well as invest in energy and structured credit investment opportunities. As of December 31, 2014, its opportunistic credit group had total AUM and Fee-Generating AUM of $10.8 billion and $6.6
The non-performing loan group provides investment management services to funds, including SIAs, that primarily invest in European commercial and residential real estate performing and non-performing loans (NPLs) and unsecured consumer loans and acquiring assets as a result of distressed market situations. Certain of the non-performing loan investment vehicles that it manages own captive pan-European loan servicing and property management platforms. These loan servicing and property management platforms operate in five European countries as of December 31, 2014 and directly service consumer credit receivables and loans secured by commercial and residential properties. As of December 31, 2014, its non-performing loan group had total AUM and Fee-Generating AUM of $5.0 billion and $3.7 billion, respectively.
The European credit group provides investment management services to funds, including SIAs, that focus on investment strategies in a variety of credit opportunities in Europe across a company’s capital structure. The European credit group invests in senior loans (secured and unsecured) and notes, mezzanine loans, subordinated notes, distressed and stressed credit and other idiosyncratic credit investments of companies established or operating primarily in Europe. Additionally, certain European credit funds will selectively invest in shipping assets and structured credit investment opportunities. The European credit group also includes CLOs that it raises and manages internally. As of December 31, 2014, its European credit group had total AUM and Fee-Generating AUM of $4.0 billion and $3.1 billion, respectively.
Athene Holding, through its subsidiaries, provides insurance products focused primarily on the retirement market and its business centers primarily on issuing or reinsuring fixed and equity-indexed annuities. The Company, through its consolidated subsidiary, Athene Asset Management, L.P. (Athene Asset Management), provides asset management services to Athene, including asset allocation and portfolio management strategies, and receives fees from Athene for providing such services. As of December 31, 2014, all of Athene’s assets were managed by Athene Asset Management. Athene Asset Management had $60.3 billion of total AUM as of December 31, 2014 in accounts owned by or related to Athene (the Athene Accounts), of which approximately $12.6 billion, or approximately 20.9%, was either sub-advised by the Company or invested in the Company funds and investment vehicles.
The Real estate segment includes opportunistic equity investing in real estate assets, portfolios, companies and platforms, and commercial real estate debt investments, including First Mortgage and Mezzanine Loans and Commercial Mortgage Backed Securities. As of December 31, 2014, its real estate group had total and fee generating AUM of approximately $9.5 billion and $6.2 billion, respectively.
The funds it manages pursue opportunistic investments in various real estate asset classes, which include hospitality, office, industrial, retail, healthcare, residential and non-performing loans. Its real estate equity funds under management include AGRE United States Real Estate Fund, L.P. and Apollo United States Real Estate Fund II, L.P., its United States focused, opportunistic funds, and its legacy Citi Property Investors (CPI) business.
With respect to its real estate debt activities, its real estate funds and accounts offer financing across a spectrum of property types and at various points within a property’s capital structure, including first mortgage and mezzanine financing and preferred equity. In addition to ARI, it also manages strategic accounts focused on investing in commercial mortgage-backed securities and other commercial real estate loans.
Apollo Global Management LLC
9 W 57th St Fl 43
NEW YORK NY 10019-2700