World different asset supervisor Apollo has launched two merchandise aimed toward giving rich buyers entry to multi-asset secondaries.
The merchandise embody 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 will likely be a part of Apollo’s Luxembourg-based different investments platform for buyers in EMEA, Asia and Latin America. ASPM Lux will likely be accessible to native buyers in a number of currencies.
The funds will spend money on secondaries throughout the capital stack and give attention to diversification throughout vintages and managers.
“We imagine these new choices will present distinct entry factors to personal market secondaries, leveraging the collective energy of the Apollo Non-public Markets ecosystem and the Apollo S3 crew, which has sourced over $160 billion in these kind of transactions previously yr,” mentioned Steve Lessar, accomplice and co-head of Apollo’s sponsor and secondary options enterprise, in an announcement. “It’s our view that secondaries can present a mixture of enticing attributes not generally present in different personal market methods, and we’re happy to make that obtainable to buyers.”
Stephanie Drescher, accomplice and chief shopper and product improvement officer with the agency, mentioned in an announcement that the launch of ASPM “underscores Apollo’s dedication to offering entry to institutional-quality different choices tailor-made to people and wealth buyers.”
Throughout its latest 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 present semi-liquid merchandise aimed on the wealth channel, together with merchandise specializing in personal credit score, personal fairness, actual belongings and infrastructure. Since 2021, when Apollo began focusing on the wealth channel, it has grown the crew to greater than 100 employees 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 tip of the yr throughout an organization earnings name in August.
“We is not going to, as an trade, construct the infrastructure required to achieve the huge, overwhelming majority of buyers who’re already properly served by conventional asset managers,” he mentioned. “I imagine our position is … to be a elements supplier for these items of our product that we are able to originate and we like having the entry and to be a three way partnership accomplice. And I can not let you know precisely how it will align, but it surely is without doubt one of the extra attention-grabbing elements 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.
