Apollo Commits €3.2 Billion to RWE Joint Venture Supporting the German Transmission Grid

Rhea-AI Summary

Apollo (NYSE: APO) has announced a significant €3.2 billion equity commitment to form a joint venture with RWE, Germany's largest power producer. The JV will hold and fund RWE's 25.1% stake in Amprion, a Transmission System Operator serving approximately 29 million people across seven German federal states.

The partnership aims to support Amprion's major grid expansion investment program over the next decade. The JV will be operationally controlled by RWE and is expected to benefit from stable dividend returns from Amprion's regulated asset base. This investment is part of Apollo's broader strategy, which has originated over $100 billion in high-grade solutions since 2020, with plans to deploy more than $100 billion in Germany over the next decade.

Positive

• Significant €3.2 billion equity commitment demonstrates strong investment capability
• Strategic partnership with Germany's largest power producer RWE
• Access to stable dividend returns from regulated asset base
• Expansion of Apollo's European infrastructure portfolio
• Part of larger $100 billion deployment strategy in Germany

Negative

• Transaction subject to regulatory approvals and closing conditions
• Significant capital commitment in a single market increases geographic concentration risk

Insights

Investment Strategist

Apollo commits €3.2B to German power infrastructure, showcasing its capital solution strategy with potential long-term regulated returns.

Apollo's €3.2 billion equity commitment to the RWE joint venture represents a strategic expansion of its infrastructure portfolio in the German energy sector. This investment follows Apollo's stated intent to deploy over $100 billion in Germany within the next decade, making this deal an important milestone in that strategy. The transaction is structured to provide Apollo with exposure to Amprion's regulated asset base, which typically offers stable, predictable returns with protection against inflation.

The investment aligns perfectly with Apollo's broader business model of providing large-scale capital solutions to leading global companies - having originated more than $100 billion of such solutions since 2020. What makes this particularly compelling is the combination of infrastructure investment with a blue-chip partner in RWE, Germany's largest power producer.

The joint venture's focus on transmission grid expansion addresses a critical bottleneck in Germany's energy transition. As renewable energy sources continue to grow, significant investment in transmission infrastructure is required to connect these often remote generation facilities to population centers. This positions Apollo to benefit from Germany's long-term commitment to energy transition while securing regulated returns that typically offer lower volatility than many alternative investments.

For investors, this transaction demonstrates Apollo's ability to secure large-scale deployment opportunities in essential infrastructure, potentially providing long-duration cash flows to support the firm's asset management business. The 25.1% ownership structure is also significant - it represents a substantial minority position that preserves strategic influence while partnering with a sector-leading operator.

Investment will help fund long-term growth capex for grid expansion

NEW YORK, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that Apollo-managed funds and affiliates have agreed to commit €3.2 billion of equity to a newly established joint venture with RWE, Germany’s largest power producer and a global leader in renewable power generation. The JV will be operationally controlled by RWE and hold and fund RWE’s 25.1% stake in Amprion, a Transmission System Operator (TSO) spanning across seven German federal states and serving approximately 29 million people and industrial corporations.

The JV will provide the required equity capital for its 25.1% stake to support Amprion’s major investment program for grid expansion over the next decade, enhancing critical German energy infrastructure. The JV is supported by reliable and stable dividend returns from Amprion’s regulated asset base. For RWE, the partnership with Apollo also aligns with its strategy to grow its generation portfolio of renewables, batteries and flexible generation assets and to focus on its core activities of power generation and energy trading.

Apollo Partner Jamshid Ehsani said, “This partnership with RWE will help fund long-term capex for critical grid expansion in Germany to power homes and industry, and it underscores our focus on delivering tailored capital solutions to leading global companies and essential infrastructure. It also reflects Apollo’s commitment to strong, lasting partnerships across both the private and public sectors. Looking ahead, we expect to further accelerate our investment activity in Europe, with a particular focus on Germany, France, Italy and the UK.”

The JV investment builds on Apollo’s significant record of providing scaled capital solutions to leading companies. Since 2020, Apollo has originated more than $100 billion of bespoke, high-grade solutions, including for European companies and/or European assets such as EDF, BP, Vonovia, Air France-KLM, AB InBev and Intel’s Fab 34 in Ireland, among others. Earlier this year, the Firm announced that it expects to deploy more than $100 billion in Germany alone over the next decade, helping to meet market demand for long-term financing and investments.

The transaction is subject to regulatory approvals and customary closing conditions, and it is expected to close in the fourth quarter of 2025. Latham & Watkins LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel to the Apollo funds.

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 June 30, 2025, Apollo had approximately $840 billion of assets under management. To learn more, please visit www.apollo.com.

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 / EuropeanMedia@apollo.com

FAQ

What is the value of Apollo's investment in the RWE joint venture?

Apollo has committed €3.2 billion in equity to the joint venture with RWE to support Amprion's grid expansion.

What is the purpose of Apollo's joint venture with RWE?

The joint venture will hold and fund RWE's 25.1% stake in Amprion to support major grid expansion investments across Germany over the next decade.

How many customers does Amprion serve in Germany?

Amprion serves approximately 29 million people and industrial corporations across seven German federal states.

When is Apollo's RWE joint venture transaction expected to close?

The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions.

What are Apollo's investment plans for Germany?

Apollo plans to deploy more than $100 billion in Germany over the next decade to meet market demand for long-term financing and investments.