|Founders||Leon Black, John Hannan, Josh Harris, Marc Rowan, Craig Cogut, Arthur Bilger, Antony Ressler|
New York City, U.S.
|Marc Rowan, CEO|
Josh Harris, senior
Scott Kleinman, Co-President and Lead Partner, Private Equity
James Zelter, Co-President and Chief Investment Officer, Credit
Gary Parr, Senior Managing Director
|Products||Private equity funds, credit funds, real estate funds, alternative investment, leveraged buyouts, growth capital, venture capital|
|Revenue||US$2.931 billion (2019)|
|US$1.407 billion (2019)|
|US$1.536 billion (2019)|
|AUM||US$455 billion (2020)|
|Total assets||US$8.542 billion (2019)|
|Total equity||US$3.038 billion (2019)|
Number of employees
|Footnotes / references|
Apollo Global Management, Inc. is an American global alternative investment management firm. It invests in credit, private equity, and real assets. As of December 31, 2020, the company had $455.5 billion of assets under management, including $328.6 billion invested in credit, including mezzanine capital, hedge funds, non-performing loans and collateralized loan obligations, $80.7 billion invested in private equity, and $46.2 billion invested in real assets, which includes real estate and infrastructure. The company invests money on behalf of pension funds, financial endowments and sovereign wealth funds, as well as other institutional and individual investors. Since inception in 1990, private equity funds managed by Apollo have produced a 24% internal rate of return (IRR) to investors, net of fees.
Apollo was founded in 1990 by Leon Black, Josh Harris, and Marc Rowan. Apollo is headquartered in the Solow Building at 9 West 57th Street in New York City, with offices across North America, Europe and Asia. Among the most notable companies in which funds managed by the company have invested include ADT Inc., CareerBuilder, Cox Media Group, Intrado, Rackspace, Redbox, Shutterfly, Sirius Satellite Radio, Smart & Final, University of Phoenix, and Yahoo!.
In addition to its private funds, Apollo operates Apollo Investment Corporation (AIC), a US-domiciled publicly traded private equity closed-end fund and business development company. AIC provides mezzanine debt, senior secured loans, and equity investments to middle-market companies, including public companies, although it historically has not invested in companies controlled by Apollo's private equity funds.
|History of private equity|
and venture capital
|(origins of modern private equity)|
|(leveraged buyout boom)|
|(leveraged buyout and the venture capital bubble)|
|(dot-com bubble to the credit crunch)|
Apollo, originally referred to as Apollo Advisors, was founded in 1990, after the collapse of Drexel Burnham Lambert in February 1990, by Leon Black, the former head of Drexel's mergers and acquisitions department, along with other Drexel alumni. Among the most notable founders are John Hannan, Drexel's former co-director of international finance; Craig Cogut, a lawyer who worked with Drexel's high-yield division in Los Angeles; and Arthur Bilger, the former head of the corporate finance department. Other founding partners included Marc Rowan, Josh Harris, and Michael Gross, who both worked under Black in the mergers and acquisitions department, and Antony Ressler, who worked as a senior vice president in Drexel's high yield department with responsibility for the new issue/syndicate desk.
Within six months after the collapse of Drexel, the Apollo launched Apollo Investment Fund L.P., the first of its private equity investment funds, formed to make investments in distressed companies. Apollo raised approximately $400 million of investor commitments based on Leon Black's reputation as a prominent lieutenant of Michael Milken and a key player in the buyout boom of the 1980s.
Lion Advisors (or Lion Capital) was founded in 1990 to provide investment services to Credit Lyonnais and foreign institutions, seeking to profit from depressed prices in the high yield market. In 1992, Lion entered into a more formal arrangement to manage the $3 billion high-yield portfolio for Credit Lyonnais which together with a consortium of other international investors provided the capital for Lion's investment activities. Lion Advisors was replaced by Ares Management.
At the time of Apollo's founding, there was little financing for new leveraged buyouts and Apollo turned instead to a strategy of distressed-to-control takeovers. Apollo purchased distressed securities which could be converted into a controlling interest in the equity of the company through a bankruptcy reorganization or other restructuring. Apollo used distressed debt as an entry point, enabling the firm to invest in such firms as Vail Resorts, Walter Industries, Culligan, and Samsonite.
Apollo acquired interests in companies that Drexel had helped finance by purchasing high-yield bonds from failed savings and loans and insurance companies. Apollo acquired several large portfolios of assets from the U.S. government's Resolution Trust Corporation. One of Apollo's earliest and most successful deals involved the acquisition of Executive Life Insurance Company's bond portfolio. Using this vehicle, Apollo purchased the Executive Life portfolio, profiting when the value of high yield bonds recovered, but also resulting in a variety of state regulatory issues for Apollo and Credit Lyonnais over the purchase.
In 1993, Apollo Real Estate Advisers was founded in collaboration with William Mack to seek opportunities in the U.S. property markets.
In April 1993, Apollo Real Estate Investment Fund, L.P., the first in a family of real estate "opportunity funds", was closed with $500 million of investor commitments.
In 2000, Apollo exited the partnership, which continued to operate as Apollo Real Estate Advisers until changing its name to AREA Property Partners effective January 15, 2009. That firm was then owned and controlled by its remaining principals, including William Mack, Lee Neibart, William Benjamin, John Jacobsson, Stuart Koenig, and Richard Mack.
In 1995, Apollo raised its third private equity fund, Apollo Investment Fund III, with $1.5 billion of investor commitments from investors that included CalPERS and the General Motors pension fund. Fund III was only an average performer for private equity funds of its vintage. Among the investments made in Fund III (invested through 1998) were: Alliance Imaging, Allied Waste Industries, Breuners Home Furnishings, Levitz Furniture, Communications Corporation of America, Dominick's, Ralphs (acquired Apollo's Food-4-Less), Move.com, NRT Incorporated, Pillowtex Corporation, Telemundo, and WMC Mortgage Corporation.
Also in 1995, Apollo founding partner Craig Cogut left the firm to found Pegasus Capital Advisors. Since inception, Pegasus has raised $1.8 billion in four private equity funds focused on investments in middle-market companies in financial distress.
In 1998, during the dot-com bubble, Apollo raised Apollo Investment Fund IV with $3.6 billion of investor commitments. As of April 8, 2008, the fund had generated a 10% IRR net of fees. Among the investments made in Fund IV (invested through 2001) were: Allied Waste Industries, AMC Entertainment, Berlitz International, Clark Retail Enterprises, Corporate Express (Buhrmann), Encompass Services Corporation, National Financial Partners, Pacer International, Rent-A-Center, Resolution Performance Products, Resolution Specialty Materials, Sirius Satellite Radio, SkyTerra Communications, United Rentals, and Wyndham Worldwide.
In April 2001, Apollo raised Apollo Investment Fund V with $3.7 billion of investor commitments. As of April 8, 2008, the fund had generated a 54% IRR net of fees. Among the investments made in Fund V (invested through 2006) were Affinion Group, AMC Entertainment, Berry Plastics, Cablecom, Compass Minerals, General Nutrition Centers (GNC), Goodman Global, Hexion Specialty Chemicals (Borden), Intelsat, Linens 'n Things, Metals USA, Nalco Investment Holdings, Sourcecorp, Spectrasite Communications, and Unity Media.
Although the founders of Ares had completed a corporate spin-off with the formation of the firm in 1997, they had initially maintained a close relationship with Apollo and operated as the West Coast affiliate of Apollo.
In 2002, when Ares raised its first corporate opportunities fund, the firm announced that it would separate from its former parent company. The timing of this separation also coincided with Apollo's legal difficulties with the State of California over its purchase of Executive Life Insurance Company in 1991. In 2002, Attorney General of California Bill Lockyer accused Apollo, Leon Black, and an investor group led by French bank Credit Lyonnais of violating California law by having a foreign government-owned bank acquire the assets and bond portfolio of Executive Life Insurance Co. in 1991. Foreign banks are not allowed to own California insurance companies.
Following the spin-off of Ares in 2002, Apollo developed two new affiliates to continue its investment activities in the capital markets. The first of these new affiliates, founded in 2003, was Apollo Distressed Investment Fund (DIF) Management a credit opportunity investment vehicle.
In 2004, Apollo Real Estate acquired the Value Enhancement Funds family of investment vehicles to broaden its offerings in the "value-added" segment of the real estate investment spectrum.
In April 2004, Apollo raised $930 million through an initial public offering (IPO) for a listed business development company, Apollo Investment Corporation. AIC provides mezzanine debt, senior secured loans, and equity investments to middle-market companies, including public companies.
In 2005, Apollo formed Hexion Specialty Chemicals through the merger of Borden, Inc., Resolution Performance Products LLC, and Resolution Specialty Materials LLC, and the acquisition of Bakelite AG. Hexion announced in July 2007 that it was acquiring Huntsman Corporation, a major specialty chemicals company, in a $6.5 billion leveraged buyout. Hexion announced in June 2008 it would refuse to close the deal, prompting a series of legal actions. The transaction was terminated on December 14 after a settlement between Hexion and Huntsman, wherein they were required to pay Huntsman $1 billion to drop fraud charges that would have potentially sent the CEO of Apollo to prison.
Between 2005 and 2007 the private equity market was booming, with new "largest buyout" records set and surpassed several times in an 18-month window. Although Apollo was involved in a number of notable and large buyouts, the firm avoided the very largest transactions during the time. Among Apollo's most notable investments during this period included Harrah's Entertainment, a gaming and casino company; Norwegian Cruise Line, a cruise line operator; Claire's Stores, a retailer of costume jewelry; and Realogy, a real estate franchisor.
In May 2006, Apollo announced the acquisition of Rexnord Corporation, a manufacturer of precision motion technology products, primarily focused on power transmission, from private equity firm The Carlyle Group for $1.825 billion.
In August 2006, Apollo launched a $2 billion publicly traded private equity vehicle in Europe, AP Alternative Assets. It was a Guernsey-domiciled publicly traded private equity closed-end limited partnership, managed by Apollo Alternative Assets, an affiliate of Apollo Management. Apollo initially attempted to raise $2.5 billion for the public vehicle but fell short when it offered the shares in June 2006, raising only $1.5 billion. Apollo raised an additional $500 million via private placements in the weeks following that sale. AAA was formed to invest alongside Apollo's main private equity funds and hedge funds. AAA's investment portfolio was made up of a mix of private equity and capital markets investments. It was liquidated in 2020.
In 2006, Apollo acquired International Paper's coated paper and supercalendered paper business for $1.4 billion, renaming the business, Verso Paper. Verso is the second-largest producer for the North American magazine publishing and catalog/commercial print markets. In May 2008, Verso became a public company via an initial public offering.
In February 2007, Apollo announced the acquisition of the Smart & Final chain of warehouse-style food and supply stores. In June 2007, Smart & Final completed the acquisition of the Henry's Marketplace chain of "farmers market" style food retailers from Wild Oats Markets as part of that company's acquisition by Whole Foods Market. In 2011, the Henry's chain was merged with Sprouts Farmers Market, which, like the Henry's markets, had been founded by Henry Boney.
In March 2007, Apollo announced the $3.1 billion leveraged buyouts of costume jewelry retailer, Claire's Stores. In 2008, Claire's experienced financial difficulty amid the slump in consumer spending.
In April 2007, Apollo acquired Noranda Aluminum, the US aluminum business of Xstrata for $1.15 billion. The aluminum business, Noranda Aluminum, includes a primary smelter and three rolling mills in Tennessee, North Carolina, and Arkansas along with other operations.
In April 2007, Apollo acquired Realogy, a franchisor that owns Coldwell Banker, Century 21 and Sotheby's International Realty, for $8.5 billion. As the United States housing market correction accelerated in 2008, Realogy faced financial pressures due to its debt load. In November 2008, Realogy launched an exchange offer for a portion of its debt to provide additional flexibility, prompting a lawsuit from Carl Icahn. In 2013, Apollo sold out of this investment, making a profit of $1.3 billion.
In May 2007, Apollo acquired Countrywide plc, a provider of residential property related services in the UK, formerly known as Hambro Countrywide (1988) and Countrywide Assured Group (1998) for $1.05 billion (not related to Countrywide Financial).
In April 2008, Apollo, TPG Capital, and The Blackstone Group acquired $12.5 billion of bank loans from Citigroup. The portfolio comprised primarily senior secured loan that had been made to finance leveraged buyout transactions at the peak of the market. Citigroup had been unable to syndicate the loans before the onset of the credit crunch. The loans were reported to have been sold in the "mid-80 cents on the dollar" relative to face value. In late 2008, Apollo received margin calls associated with the financing of its purchase of certain loan portfolios as the values of the loans decreased.
In July 2008, the company closed a $758 million value-add fund.
During the financial crisis of 2007–2008 several of Apollo's investments come under pressure. Apollo's 2005 investment in the struggling US retailer Linens 'n Things suffered from a significant debt burden and softening consumer demand. In May 2008, Linens filed for bankruptcy protection, costing Apollo all of its $365 million investment in the company. In 2009, the company was sued by a noteholder claiming mismanagement.
Apollo exercised its "PIK toggle" option at Claire's to shut off cash interest payments to its bondholders and instead issue more debt, in order to provide the company with additional financial flexibility.
In December 2008, Apollo completed fundraising for its latest fund, Apollo Investment Fund VII, with approximately $14.7 billion of investor commitments. Apollo had been targeting $15 billion, but had been in fundraising for more than 16 months, with the bulk of the capital raised in 2007.
In November 2009, Liberty Global acquired Unity Media GMBH; funds managed by Apollo owned a 31% interest.
In December 2009, Apollo announced the acquisition of Cedar Fair Entertainment Company for $635 million and assumed debt valuing the company at $2.4 billion. In April 2010, the deal was terminated due to poor shareholder response.
In June 2011, Apollo acquired CKx.
In 2013, Apollo acquired Pitney Bowes Management Services (PBMS) for $400 million. From PBMS, Apollo formed Novitex Enterprise Solutions. Novitex is a document outsourcing provider that manages business-critical services for over 500 companies across ten industries. In 2017, it was merged into Exela Technologies.
In December 2013, Apollo bought a portfolio of Irish home loans from Lloyds Bank for €307 million, less than half their face value. The shares were bought by an Apollo Global Management subsidiary, Tanager Limited.
In 2016, Apollo acquired Constellis for $1 billion. Constellis is a private military contractor that was created as a result of a merger between rival contractors Triple Canopy and Academi in 2014. Academi, founded by Erik Prince and formerly known as Blackwater USA, is best known for its role in the Nisour Square massacre, where Blackwater guards killed 17 Iraqi civilians and injured 20.
In February 2017, Apollo Education Group, the parent company of the University of Phoenix, was acquired by funds managed by Apollo Global Management and The Vistria Group, for $1.14 billion.
In February 2019, AGM was in talks to buy Nexstar Media Group for over $1 billion. However, on February 14, 2019, Cox Media Group announced that it was selling its 14 television stations to Apollo. In March 2019 filings with the Federal Communications Commission (FCC), Apollo disclosed that, through the newly formed Terrier Media, the Cox stations would be acquired for $3.1 billion (to be reduced by the value of a minority equity stake in Terrier that will be retained by Cox Enterprises); Terrier will also concurrently acquire Northwest Broadcasting, giving the company 25 television stations. On June 26, 2019, Cox announced that its 60 radio stations, as well as its national advertising business CoxReps, and local OTT advertising agency Gamut, would also be acquired by the new company, which concurrently announced that it would retain the Cox Media Group name instead of Terrier Media. On February 10, 2020, Cox Enterprises bought back the Ohio newspapers it sold to AGM. The FCC required Apollo to reduce the daily newspapers to three days or sell them.
In February 2019, Apollo acquired Aspen Insurance for $2.6 billion.
On June 10, 2019, Apollo announced that it would acquire Shutterfly for $2.7 billion, as well as its competitor Snapfish in a separate transaction valued at around $300 million, with District Photo as a minority stakeholder.
In August 2019, Apollo agreed to provide approximately $1.8 billion of debt financing to support New Media Investment Group's acquisition of Gannett. On October 23, 2019, AGM announced it signed agreements to take a 48.6% stake in Italian gambling group Gamenet SPA.
In December 2019, Apollo acquired Cox Media Group for $3 billion, acquiring Cox's 13 television stations, 54 radio stations, 3 newspapers, national television advertising business – CoxReps, and local OTT advertising business – Gamut. Smart Media.
In July 2020, Apollo launched a $12 billion platform to make big loans.
In March 2021, Apollo Global Management announced the acquisition of life insurance company Athene Holdings for $11 billion. Prior to the merger announcement, Apollo owned 35% of Athene.
In March 2021, Leon Black stepped down as CEO and chairman after revelations that he paid Jeffrey Epstein $158 million for personal tax-related advice over the period from 2012 to 2017. Marc Rowan became chief executive officer after Black stepped down.
In April 2021, Apollo launched Apollo Origination Partnership, a $1.8 billion direct lending fund seeking unlevered returns of 8%-10% and 12%-14% leveraged returns.
In July 2021, funds managed by Apollo acquired EmployBridge, the largest industrial staffing company in the United States.
On August 3, 2021, Apollo announced the acquisition of the ILEC (Incumbent Local Exchange Carrier) Operations in 20 states from Lumen Technologies for $7.5 billion, including $1.4 billion of assumed debt.
In August 2021, Apollo launched a $500 million fund to invest in SPACs.
|Apollo Investment Fund IX||2017||$24,600|
|Apollo Investment Fund VIII||2014||$18,400|
|Apollo Investment Fund VII||2008||$14,700|
|Apollo Investment Fund VI||2005||$10,200|
|Apollo Investment Fund V||2001||$3,700|
|Apollo Investment Fund IV||1998||$3,600|
|Apollo Investment Fund III||1995||$1,500|
|Apollo Investment Fund II||1992||$500|
|Apollo Investment Fund I||1990||$400|
Ares Management, founded in 1997, was initially established to manage a $1.2 billion market value collateralized debt obligation vehicle. Ares grew to manage a family of collateralized loan obligation (CLO) vehicles that invested in capital markets-based securities including senior bank loans and high-yield and mezzanine debt. Ares was founded by Antony Ressler and John H. Kissick, both partners at Apollo as well as Bennett Rosenthal, who joined the group from the global leveraged finance group at Merrill Lynch.
Ares I and II which were raised were structured as market value CLOs. Ares III-Ares X were structured as cash flow CLOs. In 2002, Ares completed a corporate spin-off from Apollo management. Although technically the founders of Ares had completed a spinout with the formation of the firm in 1997, they had maintained a close relationship with Apollo over its first five years and operated as the West Coast affiliate of Apollo. Shortly thereafter, Ares completed fundraising for Ares Corporate Opportunities Fund, a special situations investment fund with $750 million of capital under management.
In 2006, Ares raised a $2.1 billion successor special situations fund, Ares Corporate Opportunities Fund II.