Apollo Provides $1 Billion Hybrid Capital Solution to Aldar
Rhea-AI Summary
Apollo (NYSE: APO) invested $1 billion in subordinated hybrid notes issued by Aldar Properties on Feb 20, 2026, marking Apollo’s fifth investment in Aldar and bringing aggregate commitments to $2.9 billion.
The proceeds are intended to bolster Aldar’s balance sheet flexibility, fund landbank replenishment, expand its develop-to-hold portfolio (near $5 billion valuation) and support strategic acquisitions. The deal is among the largest foreign direct investments in Abu Dhabi private sector and the region’s largest corporate hybrid private placement.
Positive
- $1 billion subordinated hybrid investment into Aldar
- Aggregate repeat commitments of $2.9 billion since 2022
- Aldar’s develop-to-hold pipeline valued at close to $5 billion
- Deal ranks among the largest-ever foreign direct investments in Abu Dhabi private sector
Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
APO fell 5.6% while key asset-management peers moved less: BAM -3.34%, BN -1.81%, KKR -0.97%, AMP -0.19%, and ARES +0.27%. The steeper APO move suggests a more stock-specific reaction than a broad sector shift.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Reputational update | Neutral | +0.2% | Letter to clients addressed past Epstein-related coverage and reiterated investigation findings. |
| Feb 12 | Earnings (peer data) | Positive | -1.2% | AB InBev reported FY25 revenue growth, EBITDA expansion and dividend plus buyback. |
| Feb 09 | Leadership change | Positive | -1.1% | Apollo appointed Diego De Giorgi as incoming Head of EMEA to drive regional expansion. |
| Feb 09 | Earnings release | Positive | +0.7% | Quarter and FY 2025 results highlighted record origination and inflows with declared dividends. |
| Feb 09 | Strategic partnership | Positive | +0.7% | Schroders and Apollo announced a hybrid public‑private market partnership targeting large flows. |
Recent APO-specific news (earnings, partnerships, leadership) has produced mixed reactions, with both aligned and divergent moves around fundamentally positive developments.
Over the past months, Apollo has reported record 2025 origination activity exceeding $300 billion and inflows above $225 billion, alongside common and preferred dividends, indicating strong operating momentum. Strategic steps included a multi‑channel partnership with Schroders targeting multi‑billion annual flows and the appointment of Diego De Giorgi to lead EMEA, where Apollo manages about $155 billion AUM. Governance and reputational matters also appeared, including a client letter on legacy Jeffrey Epstein-related coverage. Today’s Aldar hybrid capital deal fits the pattern of scaling Apollo’s capital solutions platform.
Market Pulse Summary
This announcement highlights Apollo-managed funds committing $1 billion to Aldar’s subordinated hybrid notes, bringing total transactions with the UAE developer to $2.9 billion. It underscores Apollo’s focus on bespoke, long‑dated capital solutions and Aldar’s growth and balance sheet objectives, including a develop‑to‑hold pipeline valued near $5 billion. In context of recent record origination and inflows, investors may watch how hybrid deals like this influence fee generation, credit performance, and geographic diversification.
Key Terms
private placement financial
AI-generated analysis. Not financial advice.
Transaction marks Apollo’s fifth investment in Aldar and the region’s largest corporate hybrid private placement
Builds on Apollo’s long-term strategic partnership with Aldar, with total transactions totalling approximately
Investment to support Aldar’s transformational growth plans and capital structure optimization
NEW YORK, Feb. 20, 2026 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that Apollo-managed funds have invested
Proceeds from the investment are intended to support Aldar’s balance sheet flexibility and strength, as well as its growth agenda, which includes landbank replenishment, expansion of its develop-to-hold portfolio, and strategic acquisitions.
Apollo Partner Jamshid Ehsani said, “Completing our fifth investment with Aldar speaks directly to Apollo’s ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors. Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team. This latest investment reflects Apollo’s continued commitment to Abu Dhabi and the broader region.”
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: “This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar’s strategy, financial management and growth trajectory. The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalise on attractive opportunities across our core markets. Importantly, it elevates Aldar’s share of stable, recurring income generated by AIP’s high quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to
The transaction is among the largest-ever foreign direct investments in Abu Dhabi’s private sector and the largest corporate hybrid private placements in the region.
It also marks the latest transaction for Apollo’s High Grade Capital Solutions business, which serves as a capital partner to many leading global companies. Apollo believes its ability to provide customized, long-dated investments is reinforced by the number of its repeat clients, having provided multiple large-scale solutions for Aldar, BP, Sony, Vonovia, Air France and the Adani-backed Mumbai Airport.
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, 2025, Apollo had approximately
Apollo 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
About Aldar
Aldar is the leading real estate developer, manager, and investor in Abu Dhabi, with a growing presence across the United Arab Emirates, the Middle East North Africa, and Europe.
The company has two core business segments, Aldar Development and Aldar Investment.
Aldar Development is a master developer of a 60 million sqm strategic landbank, creating integrated and thriving communities across Abu Dhabi, Dubai, and Ras Al Khaimah's most desirable destinations. The delivery of Aldar's developments is managed by Aldar Projects, which is also a key partner of the Abu Dhabi government in delivering housing and infrastructure projects across the UAE's capital. Internationally, Aldar Development wholly owns UK real estate developer London Square, as well as a majority stake in leading Egyptian real estate development company, SODIC.
Aldar Investment houses a core asset management business comprising a portfolio of more than AED 49 billion worth of investment grade and income-generating real estate assets diversified across retail, residential, commercial, logistics, and hospitality segments. It manages four core platforms: Aldar Investment Properties, Aldar Hospitality, Aldar Education, and Aldar Estates.
For more information on Aldar please visit www.aldar.com or follow us on:
https://www.instagram.com/aldar/?hl=en
https://www.linkedin.com/company/110553/admin/feed/posts/
https://x.com/aldartweets?lang=en
Aldar Contacts
| Obaid Al Yammahi Aldar Properties +971 2 810 5555 | Sarah Abdelbary Brunswick +971 2 234 4600 aldar@brunswickgroup.com |
FAQ
What did Apollo announce about the $1 billion Aldar investment (APO) on Feb 20, 2026?
How does the $1 billion hybrid for Aldar affect Aldar’s capital structure and growth plans?
What is the significance of the Feb 20, 2026 transaction for Apollo (APO)?
Why is the Aldar hybrid private placement described as regionally significant on Feb 20, 2026?
What does Apollo’s fifth investment in Aldar mean for investors in APO stock?
