Apollo to Provide USD $500 Million Hybrid Capital Solution to Aldar in Fourth Transaction
Rhea-AI Summary
Apollo (NYSE: APO) has announced a USD $500 million investment in Subordinated Notes issued by Aldar Properties, marking one of Abu Dhabi's largest corporate hybrid private placements. This transaction brings Apollo's total investment in Aldar to approximately USD $1.9 billion across four transactions since 2022.
The deal follows Apollo's August 2022 transaction where Apollo-managed funds invested USD $1.4 billion in Aldar, including a USD $400 million equity investment in Aldar Investment Properties. This latest investment strengthens Apollo's presence in Abu Dhabi and the UAE, following their November 2024 announcement of extending their multi-billion-dollar partnership with Mubadala Investment Company.
Since 2020, Apollo's High-Grade Capital Solutions strategy has originated nearly $100 billion in bespoke capital solutions for major companies including Intel, Sony, Air France, and AB InBev.
Positive
- Secured USD $500 million investment deal with Aldar Properties
- Total investment in Aldar reached USD $1.9 billion since 2022
- Successfully expanded strategic partnership in Abu Dhabi market
- High-Grade Capital Solutions strategy has originated nearly $100 billion in deals
Negative
- None.
Insights
This USD $500 million hybrid capital investment in Aldar marks a strategic milestone in Apollo's Middle East expansion. The structured nature of Subordinated Notes provides Aldar with flexible, long-term capital while offering Apollo attractive yields with equity-like features. The cumulative USD $1.9 billion investment across four transactions since 2022 positions Apollo as a dominant capital provider in the region.
The deal's structure is particularly noteworthy as hybrid instruments typically combine debt and equity characteristics, allowing Aldar to strengthen its balance sheet without immediate dilution while providing Apollo with enhanced returns compared to traditional debt investments. This aligns with Apollo's successful High-Grade Capital Solutions strategy, which has deployed an impressive USD $100 billion since 2020 to blue-chip clients globally.
The transaction reinforces Apollo's strategic pivot toward the Middle East, especially following their extended partnership with Mubadala. This regional focus could generate significant fee-related earnings through both management fees and potential performance fees, contributing to Apollo's recurring revenue streams. The deal also demonstrates Apollo's ability to execute large-scale, complex transactions in emerging markets, potentially opening doors for similar opportunities with other regional players.
Transaction Represents One of the Largest Corporate Hybrid Private Placements in Abu Dhabi and Brings Aggregate Investment in Aldar led by Apollo to Approximately USD
NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced an agreement for Apollo-managed affiliates, funds and clients to invest USD
Apollo Partner Jamshid Ehsani said, “We are pleased to broaden our partnership and provide another scaled capital solution to Aldar by investing in a leading real estate franchise that we believe offers an attractive investment opportunity for our clients. Apollo’s fourth investment in Aldar underscores our strong partnership with the company as well as our commitment to serving as a leading capital provider to the broader Abu Dhabi ecosystem.”
The hybrid private placement marks Apollo’s latest commitment to Abu Dhabi and the UAE and follows an August 2022 transaction in which Apollo-managed funds and clients invested a total of USD
Since 2020, under its High-Grade Capital Solutions strategy, Apollo has originated nearly
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 September 30, 2024, Apollo had approximately
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
What is the value of Apollo's (APO) latest investment in Aldar Properties?
How much has Apollo (APO) invested in total in Aldar since 2022?
What was Apollo's (APO) previous investment in Aldar in August 2022?
How much has Apollo's (APO) High-Grade Capital Solutions strategy originated since 2020?
