Profile: Apollo Global Management LLC (APO.N)
21 Nov 2014
Apollo Global Management, LLC (Apollo) is a global alternative asset manager. The Company’s primary business is to raise and invest private equity, capital markets and real estate funds as well as managed accounts, on behalf of pension and endowment funds, as well as other institutional and high net worth individual investors. For these investment and management services, Apollo receives management fees generally related to the amount of assets managed, transaction and advisory fees for the investments made and carried interest income related to the performance of the funds managed. Apollo has three primary business segments: Private equity, Capital markets and Real estate. It also manages AP Alternative Assets, L.P. (AAA), a permanent capital vehicle, which invests substantially all of its capital in or alongside Apollo-sponsored entities, funds, and other investments, and several strategic investment accounts established to facilitate investments by third-party investors directly in Apollo-sponsored funds and other transactions. The Company is managed and operated by its manager, AGM Management, LLC. On October 24, 2011, the Company acquired Gulf Stream Asset Management (Gulf Stream), which managed 10 collateralized loan obligations (CLOs) with approximately $3 billion in assets under management. In February 2012, Accor SA sold its interest in Novotel New York Times Square Hotel to Apollo Global Management, LLC and Chartres Lodging Group, LLC's Joint Venture. In February 2012, the Company acquired Taminco Group Holdings. In April 2012, the Company acquired Stone Tower Capital LLC. In May 2012, Apollo acquired EP Energy from El Paso Corp. In June 2012, the Company's Apollo Global Real Estate and Glebe Asset Management Limited has taken ownership of a building in Great Sutton Street, London EC1. In March 2013, The McGraw-Hill Companies Inc completed the sale of its McGraw-Hill Education business to investment funds affiliated with Apollo Global Management, LLC, and the Company acquired AURUM Holdings Ltd. In October 2013, Pitney Bowes Inc sold Pitney Bowes Management Services with Apollo. In November 2013, the Company announced that Midcap Financial, LLC has been acquired by an entity managed by the Company. Effective December 1, 2013, Apollo Global Management LLC acquired Madrid-based EVO Banco of NCG Banco SA. Effective January 3, 2014, Apollo Global Management LLC acquired Altamira Santander Real Estate SA. In February 2014, Apollo Global Management, LLC completed the acquisition of CEC Entertainment Inc. Effective February 28, 2014, the Company acquired EVO Banco of NCG Banco SA (NCG), a unit of Fondo de Reestructuracion Ordenada Bancaria. In May 2014, Apollo European Principal Finance Fund II, a fund affiliated with the Company, announced the completion of the acquisition of a portfolio of 18 European hotels from Ivanhoe Cambridge. Effective May 23, 2014, the Company acquired Event Rentals Inc, an Inglewood-based provider of party supplies rental services.
Private equity primarily invests in control equity and related debt instruments, convertible securities and distressed debt investments. Capital markets primarily invests in non-control debt and non-control equity investments, including distressed instruments. Real estate invests in legacy commercial mortgage-backed securities, commercial first mortgage loans, mezzanine investments and other commercial real estate-related debt investments. Additionally, the Company sponsors real estate funds that focus on opportunistic investments in distressed debt and equity recapitalization transactions.
As of December 31, 2011, the Company owned, through three intermediate holding companies APO Corp. (APO Corp), APO Asset Co., LLC (APO Asset), and APO (FC), LLC (APO (FC)), (collectively, the Intermediate Holding Companies), 34.1% of the economic interests of, and operates and controls all of the businesses and affairs of, the Apollo Operating Group. AP Professional Holdings, L.P., (Holdings), is the entity, through which the Managing Partners and other contributing partners (the Contributing Partners) hold Apollo Operating Group Units (AOG Units) representing 65.9% of the economic interests in the Apollo Operating Group as of December 31, 2010.
The Company distressed and hedge funds with total AUM of $1.9 billion as of December 31, 2011, that primarily invest in North America, Europe and Asia. As of December 31, 2011, Apollo managed the United States and European-based mezzanine funds and related investment vehicles with total AUM of $3.9 billion. AIC is a closed-end, non-diversified management investment company. AIC’s primary focus is to generate both current income and capital appreciation primarily through investments in subordinated debt, as well as by making investments in certain senior secured loans and/or equity in private middle market companies. The Company manages seven senior credit funds with total AUM of $15.4 billion as of December 31, 2011. The senior credit funds together with its private equity funds and certain other capital markets funds, as of December 31, 2011, have deployed approximately $34 billion, including leverage, in senior credit investments. As of December 31, 2011, the fund has portfolio investments throughout Europe with concentration in the United Kingdom, Germany, Spain and Portugal.
Apollo European Principal Finance Fund L.P. (EPF) is an investment fund, which invests primarily in European commercial and residential mortgage performing and non-performing loans (NPLs) and unsecured consumer loans. NPLs are loans held by financial institutions that are in default of principal or interest payments for 90 days or more. Athene Asset Management LLC is an investment manager that provides asset management services to Athene Holding Ltd. In addition, certain Apollo affiliates manage assets for Athene Asset Management. As of December 31, 2011, Athene represented approximately $8.5 billion of Apollo’s total AUM, $2.1 billion of which was managed by other Apollo funds and investment vehicles. During the year ended December 31, 2011, it launched Apollo Residential Mortgage, Inc., a residential real estate finance company that is focused primarily on investing in, financing, and managing residential mortgage-backed securities, residential mortgage loans, and other residential mortgage assets in the United States.
Apollo Global Management LLC
43rd Floor, 9 West 57th Street
NEW YORK NY 10019