Apollo to Acquire Dutch Equipment Leasing Specialist Beequip from NIBC

Rhea-AI Summary

Apollo (NYSE: APO) has announced its agreement to acquire Beequip, a leading Dutch equipment leasing specialist, from NIBC. Beequip, founded in 2015, has grown to become a major independent equipment financing company in the Netherlands, with a current portfolio of €1.4 billion and €700 million of annual run-rate originations. The acquisition will enhance Apollo's European equipment finance platform, established in 2018 with UK-based Haydock Finance.

Beequip specializes in financing and leasing solutions for new and used heavy equipment across various sectors. The transaction, expected to close by the end of 2024, aligns with Apollo's strategy of focusing on high-quality, secured credit generation across corporate and consumer categories. Apollo reported record debt origination volumes of $92 billion in the first half of 2024 and $146 billion for the 12-month period ending June 30, 2024.

Positive

• Acquisition of Beequip expands Apollo's European equipment finance platform
• Beequip has a substantial portfolio of €1.4 billion and €700 million annual run-rate originations
• Apollo reported record debt origination volumes of $92 billion in H1 2024
• Transaction aligns with Apollo's strategy for high-quality, secured credit generation

Negative

• None.

Insights

Financial Analyst

Apollo's acquisition of Beequip marks a strategic move to expand its European equipment finance platform. With Beequip's €1.4 billion portfolio and €700 million annual run-rate originations, this deal significantly bolsters Apollo's presence in the equipment leasing sector. The acquisition aligns with Apollo's focus on secured credit generation and diversification across corporate and consumer categories.

For investors, this move signals Apollo's commitment to growth in the lucrative SME financing market. The deal could potentially enhance Apollo's revenue streams and provide a stable source of income, given Beequip's established position in the Netherlands. However, investors should monitor integration risks and the performance of the European SME sector, which could impact the success of this acquisition.

Market Research Analyst

The acquisition of Beequip by Apollo reflects a broader trend in the financial sector towards specialized lending platforms. This move capitalizes on the growing demand for equipment financing among SMEs, a segment often underserved by traditional banks. The European equipment leasing market shows potential for expansion, with Beequip's international reach providing Apollo a springboard for further growth.

Investors should note that this acquisition enhances Apollo's origination ecosystem, which reported record debt origination volumes of $92 billion in H1 2024. This strategy of building a diverse origination platform could provide Apollo with a competitive edge in generating consistent returns, particularly in the current economic climate where efficient capital deployment is crucial.

Tech Expert

Beequip's self-developed fintech systems for providing user-friendly and tailored financing solutions represent a valuable technological asset in this acquisition. This tech-driven approach to equipment financing aligns well with the increasing digitalization of financial services. Apollo's backing could potentially accelerate Beequip's technological development, enhancing its competitive edge in the market.

For investors, this tech component adds an interesting dimension to the deal. It suggests potential for scalability and efficiency improvements in Apollo's equipment finance operations. However, it will be important to monitor how well Apollo integrates and leverages Beequip's technology across its broader platform to fully realize the value of this acquisition.

NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that balance sheet and other investor capital managed under its Aligned Alternatives platform have agreed to acquire Netherlands-based equipment leasing specialist Beequip from NIBC.

Founded in 2015, Beequip has grown to become a leading independent equipment financing company in the Netherlands, serving small and medium enterprises (SMEs) across Europe and internationally, with a current portfolio of €1.4 billion and €700 million of annual run-rate originations. Beequip offers financing and leasing solutions for new and used heavy equipment spanning transport, cranes, containers, maritime and more.

Beequip will further the build-out of Apollo’s European equipment finance platform, established in 2018 with UK-based Haydock Finance. The acquisition is consistent with Apollo’s origination platform strategy focused on high-quality, secured credit generation, diversified across corporate and consumer categories, including asset-backed finance.

“Beequip has established itself as a leader in the equipment finance space in its home market, with a strong team and robust underwriting to serve a growing base of SMEs in the Netherlands and beyond,” said Kevin Crowe,” Partner in Apollo’s Financial Institutions Group.

“We are pleased to welcome the Beequip team to Apollo’s origination ecosystem and to support the business as it continues to scale, meeting vital demand from SMEs to facilitate their business plans and fuel economic growth,” added Apollo’s Mikhail Rychev.

Beequip co-founders Giel Claes and Peter Loef said, “We are extremely proud of our team and the success we have achieved. Leveraging our expertise in equipment, our focus on used machinery, and our 'iron above numbers' philosophy, we have consistently increased market share. With the help of our self-developed fintech systems, we have provided entrepreneurs with user-friendly and tailored financing solutions for heavy equipment. We look forward to working in partnership with Apollo in this exciting next chapter, with a solid foundation for growth domestically and internationally alongside a steadfast commitment to risk management.

The transaction is subject to customary closing conditions and expected to be completed before the end of 2024.

Through the first half of 2024, Apollo reported record debt origination volumes of $92 billion in aggregate across the firm and its affiliate platforms, and for the 12-month period ending June 30, 2024, Apollo reported $146 billion of debt origination. Origination is integral to Apollo’s strategy seeking excess spreads in private investment grade credit to serve its retirement services businesses and other ratings-sensitive liabilities.

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 to private equity with a focus on three investing strategies: yield, hybrid, and 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, 2024, Apollo had approximately $696 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 company is Apollo (APO) acquiring in the Netherlands?

Apollo (APO) is acquiring Beequip, a Dutch equipment leasing specialist, from NIBC.

What is the current portfolio size of Beequip?

Beequip's current portfolio is €1.4 billion with €700 million of annual run-rate originations.

When is the acquisition of Beequip by Apollo (APO) expected to close?

The acquisition is expected to be completed before the end of 2024, subject to customary closing conditions.

How does the Beequip acquisition fit into Apollo's (APO) strategy?

The acquisition aligns with Apollo's origination platform strategy focused on high-quality, secured credit generation across corporate and consumer categories, including asset-backed finance.