International various asset supervisor Apollo has launched two merchandise aimed toward giving rich buyers entry to multi-asset secondaries.
The merchandise embrace the Apollo S3 Non-public Markets Fund (ASPM U.S.), a perpetual tender provide fund open to U.S. accredited buyers, and Apollo S3 Non-public Markets Lux (ASPM Lux), which can be a part of Apollo’s Luxembourg-based various investments platform for buyers in EMEA, Asia and Latin America. ASPM Lux can be accessible to native buyers in a number of currencies.
The funds will put money into secondaries throughout the capital stack and concentrate on diversification throughout vintages and managers.
“We imagine these new choices will present distinct entry factors to non-public market secondaries, leveraging the collective power of the Apollo Non-public Markets ecosystem and the Apollo S3 crew, which has sourced over $160 billion in a lot of these transactions up to now yr,” mentioned Steve Lessar, associate and co-head of Apollo’s sponsor and secondary options enterprise, in a press release. “It’s our view that secondaries can present a mix of enticing attributes not generally present in different personal market methods, and we’re happy to make that obtainable to buyers.”
Stephanie Drescher, associate and chief consumer and product improvement officer with the agency, mentioned in a press release that the launch of ASPM “underscores Apollo’s dedication to offering entry to institutional-quality various choices tailor-made to people and wealth buyers.”
Throughout its current investor day, Apollo executives revealed their five-year targets of elevating $30 billion yearly from international wealth buyers, reaching $150 billion in AUM for the agency’s personal wealth-centered merchandise and doubling the scale of their inner wealth crew. The corporate claims to already promote about $1 billion a month throughout its current semi-liquid merchandise aimed on the wealth channel, together with merchandise specializing in personal credit score, personal fairness, actual property and infrastructure. Since 2021, when Apollo began focusing on the wealth channel, it has grown the crew to greater than 100 workers members and raised a cumulative $27 billion.
Apollo CEO Mark Rowan talked about planning a number of fund launches aimed on the retail channel earlier than the top of the yr throughout an organization earnings name in August.
“We won’t, as an business, construct the infrastructure required to succeed in the huge, overwhelming majority of buyers who’re already effectively served by conventional asset managers,” he mentioned. “I imagine our function is … to be a components supplier for these items of our product that we will originate and we like having the entry and to be a three way partnership associate. And I can not let you know precisely how it’ll align, but it surely is likely one of the extra attention-grabbing components of our enterprise proper now.”
Apollo is just one of an rising cohort of other asset managers launching new semi-liquid funds aimed on the wealth channel. Final week, personal markets funding administration agency Hamilton Lane introduced it was launching two evergreen funds focusing on personal markets infrastructure investments on behalf of accredited buyers.
