Apollo races to $1.75bn credit fund close thanks to LP demand amid coronavirus dislocation

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Apollo Global Management has raised about $1.75bn for the final close of its latest dislocated credit fund after just a few weeks in the market.

The firm said the rapid raise for Apollo Accord Fund III B was “driven by institutional demand for strategies that invest amid the volatility and market conditions seen in the first quarter of 2020”.

Apollo’s Accord strategy focuses on acting as a liquidity provider during times of broad-based market stress, by purchasing high-quality, secured cross-asset credit risk.

John Zito, deputy CIO of credit and co-head of global corporate credit at Apollo, said, “Apollo has a history of successfully investing during periods of dislocation, and we are pleased with the investor response to our Accord strategy that seeks to purchase mispriced credit risk.

“We saw significant investment opportunities in the first quarter driven by the volatile environment, and we expect volatility to continue as markets respond to the crisis and structural conditions.”

Apollo had assets under management of approximately $316bn as of March 31 this year, across credit, private equity and real assets funds.

Earlier this week Apollo agreed a $1.75bn investment in Cerberus Capital-backed grocery chain Albertsons, giving the business a $10bn valuation.

The supermarket chain, one of the largest food and drug retailers in the US, had submitted paperwork for a potential IPO two months ago – its third attempt in five years to go public.

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