Apollo Closes its Debut Secondaries Fund at $5.4 Billion, Exceeding Target
Rhea-AI Summary
Apollo (NYSE: APO) has successfully closed its debut equity secondaries fund, Apollo S3 Equity and Hybrid Solutions Fund I (ASEHS), raising $5.4 billion in commitments, exceeding its target. The fund closure brings the total capital raised across Apollo's Sponsor and Secondary Solutions (S3) platform to nearly $10 billion since its August 2022 launch.
The fund attracted diverse global investors, including pension funds, sovereign wealth funds, financial institutions, and wealth segment participants. ASEHS aims to provide comprehensive financing and liquidity solutions, including secondary investments, NAV loans, GP lending, and staking for private markets sponsors and investors across asset classes.
Positive
- Fund exceeded its target by raising $5.4 billion in commitments
- Total capital raised across S3 platform reaches nearly $10 billion since 2022 launch
- Strong diversification of global investors including pension funds, sovereign wealth funds, and financial institutions
- Strategic timing following record secondary transaction activity in 2024
Negative
- None.
Insights
Apollo exceeds target with $5.4B secondaries fund close, expanding strategic capabilities with record fundraising momentum.
Apollo's successful closing of its debut secondaries fund at $5.4 billion, exceeding targets, establishes the firm as a substantial player in the secondaries market. This achievement brings their Sponsor and Secondary Solutions (S3) platform to nearly $10 billion in capital raised since launching in August 2022 - remarkable scaling in under three years.
The diverse investor base, including pension funds, sovereign wealth funds, financial institutions, and wealth segment clients, signals strong institutional confidence in Apollo's secondaries strategy. This broad support is particularly noteworthy given the fund's status as Apollo's first dedicated offering in this space.
The timing appears strategic, with the press release noting "record levels of secondary transaction activity in 2024" - positioning the fund to capitalize on heightened market demand. The S3 platform's comprehensive approach offers flexible capital solutions including secondary investments, NAV loans, GP lending, and staking across asset classes.
For Apollo shareholders, this represents successful execution of strategic diversification into a high-growth segment of the alternatives market. The expansion complements their existing strengths while potentially creating valuable cross-platform synergies. The speed of capital raising demonstrates Apollo's ability to efficiently scale new business lines and expand their addressable market in the alternative investment landscape.
Apollo's $5.4B secondaries fund close demonstrates impressive market entry, strategic timing, and flexible solutions approach.
Apollo's $5.4 billion secondaries fund close marks an impressive entry into the competitive secondaries landscape. Reaching nearly $10 billion across the S3 platform since its 2022 launch demonstrates exceptional fundraising velocity and validates their strategic push into this segment.
The secondaries market has undergone significant evolution, transforming from a distressed-focused niche into a sophisticated portfolio management tool for both GPs and LPs. Apollo's timing coincides with record secondary transaction volumes in 2024, reflecting heightened demand for liquidity solutions across private markets.
What distinguishes Apollo's approach is their holistic solution set spanning traditional LP secondaries, GP-led transactions, NAV financing, and other liquidity tools. This comprehensive capability allows them to address various market needs with structural flexibility that specialized secondaries players may lack.
The press release's emphasis on a "disciplined, partnership-oriented approach" suggests Apollo is positioning secondaries not merely as transactions but as relationship-building opportunities within the private markets ecosystem. Their integrated platform creates information advantages and relationship synergies that could drive deal sourcing.
The successful fundraise firmly establishes Apollo as a significant player in what Co-President Scott Kleinman describes as "an increasingly important part of the financial ecosystem," with substantial runway for continued growth as private markets mature and liquidity needs evolve.
Brings Total Capital Raised Across Apollo S3 Platform to Nearly
NEW YORK, May 01, 2025 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced the final close of Apollo S3 Equity and Hybrid Solutions Fund I (“ASEHS” or the “Fund”), the flagship equity secondaries drawdown strategy of Apollo’s Sponsor and Secondary Solutions (S3) platform, with approximately
S3 and ASEHS seek to provide a holistic set of financing and liquidity solutions, including secondary investments, net asset value (NAV) loans, GP lending, staking and more, for private markets sponsors and investors across asset classes, leveraging Apollo’s expertise in private markets and global, integrated platform. Following record levels of secondary transaction activity in 2024, Apollo believes the Fund is well positioned to continue to address significant market needs for dynamic liquidity solutions for GPs and LPs while providing strong alignment with investors.
Co-Heads of Apollo S3 Steve Lessar, Veena Isaac and Konnin Tam said, “We believe this successful fundraise solidifies S3 as a leading investment platform providing flexible capital solutions across the secondaries landscape. The strong support that we received from our global investors reflects our differentiated platform and strategy, our disciplined, partnership-oriented approach, as well as the vast and growing opportunity set in private market secondaries.”
Apollo Co-President Scott Kleinman said, “We have made incredible progress since launching our S3 business unit less than three years ago, efficiently scaling a new business line in a high-growth market. The provision of liquidity solutions in a variety of formats to both sponsors and LP investors is an increasingly important part of the financial ecosystem, and we believe the S3 platform is positioned as a creative capital solutions provider of choice amid robust market demand.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP represented Apollo in connection with the closing of ASEHS.
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 credit to private 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 December 31, 2024, Apollo had approximately
About Apollo S3
S3 is Apollo's Sponsor & Secondary Solutions business. S3 provides flexible capital solutions to asset managers and limited partners across the risk-reward spectrum. S3 is a natural extension of Apollo's global investment platform, offering partner-oriented capital across asset classes including private equity, private credit, infrastructure and real estate. To learn more about S3, please visit http://www.apollos3.com/.
Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
212-822-0540
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
212-822-0491
FAQ
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