Apollo Global Management has raised $5.4bn for its first secondaries fund, S3 Equity and Hybrid Solutions, as institutional demand for liquidity continues to grow amid persistent market headwinds. 

The fund is part of Apollo’s broader Sponsor and Secondary Solutions (S3) platform, which has raised nearly $10bn across various private market strategies since its 2022 launch.

Managed by Apollo’s S3 Private Markets team, the strategy focuses on secondary transactions such as the purchase of limited partner stakes, NAV-based lending, and GP-led continuation vehicles. The fund aims to capitalise on increasing investor need for alternative liquidity solutions during a time when traditional exit channels remain constrained.

“With traditional exit routes still challenged, secondaries provide an increasingly vital tool for investors needing to rebalance or de-risk portfolios,” said Konnin Tam, who co-leads the platform with Veena Isaac and Steve Lessar. “We often see better quality assets come to market during periods of volatility.”

The secondaries market is expected to reach record levels this year, with transaction volume projected to hit $162bn to $182bn, according to Evercore. The trend comes as limited partners endure the longest distribution drought in over a decade, prompting a shift toward more flexible and timely liquidity strategies.

Source: Bloomberg