Founded in 1990, Apollo is a leading global alternative investment manager.
We are a contrarian, value-oriented investment manager in private equity, credit
and real estate, with significant distressed investment expertise. We have a
flexible mandate in many of the funds we manage which enables our funds to invest
opportunistically across a company’s capital structure. We raise, invest
and manage funds on behalf of some of the world’s most prominent pension,
endowment and sovereign wealth funds, as well as other institutional and individual
investors.
Our objective is to achieve superior long-term risk-adjusted returns for our
fund investors. The majority of the investment funds we manage are designed
to invest capital over periods of seven or more years from inception, thereby
allowing us to generate attractive long-term returns throughout economic cycles.
Our investment approach is value-oriented, focusing on nine core industries
in which we have considerable knowledge and experience, and emphasizing downside
protection and the preservation of capital. Our core industry sectors include
chemicals, natural resources, consumer and retail, distribution and transportation,
financial and business services, manufacturing and industrial, media and cable
and leisure, packaging and materials and the satellite and wireless industries.
Our contrarian investment management approach is reflected in a number of ways,
including:
our willingness to pursue investments in industries that our competitors typically
avoid;
the often complex structures employed in some of the investments of our funds,
including our willingness to pursue difficult corporate carve-out transactions;
our experience investing during periods of uncertainty or distress in the economy
or financial markets when many of our competitors simply reduce their investment
activity;
our orientation towards sole sponsored transactions when other firms have opted
to partner with others; and
our willingness to undertake transactions that have substantial business, regulatory
or legal complexity.
We have applied this investment philosophy to identify what we believe are attractive
investment opportunities, deploy capital across the balance sheet of industry
leading, or “franchise,” businesses and create value throughout
economic cycles.
We rely on our deep industry, credit and financial structuring experience, coupled
with our strengths as a value-oriented, distressed investment manager, to deploy
significant amounts of new capital within challenging economic environments.
Our approach towards investing in distressed situations often requires our funds
to purchase particular debt securities as prices are declining, since this allows
us both to reduce our funds’ average cost and accumulate sizable positions
which may enhance our ability to influence any restructuring plans and maximize
the value of our funds’ distressed investments. As a result, our investment
approach may produce negative short-term unrealized returns in certain of the
funds we manage. However, we concentrate on generating attractive, long-term,
risk-adjusted realized returns for our fund investors, and we therefore do not
overly depend on short-term results and quarterly fluctuations in the unrealized
fair value of the holdings in our funds.
In addition to deploying capital in new investments, we seek to enhance value
in the investment portfolios of the funds we manage. We have relied on our transaction,
restructuring and credit experience to work proactively with our private equity
funds’ portfolio company management teams to identify and execute strategic
acquisitions, joint ventures, and other transactions, generate cost and working
capital savings, reduce capital expenditures, and optimize capital structures
through several means such as debt exchange offers and the purchase of portfolio
company debt at discounts to par value.
We have three business segments: private equity, credit and real estate.