Apollo Global Management has agreed to sell Oldenburgische Landesbank (OLB) to France’s Crédit Mutuel for €1.7bn, securing a strong internal rate of return of approximately 20% and completing one of the few successful private equity exits from Germany’s notoriously challenging banking sector.

The deal follows a decade-long strategy by Apollo, which built OLB through a series of acquisitions starting in 2014, including Bremer Kreditbank, Bankhaus Neelmeyer, and Degussa Bank. Despite earlier plans for an IPO, market volatility—including the collapse of Silicon Valley Bank and Credit Suisse—prompted Apollo to pursue a strategic sale instead.

Apollo’s sale to Crédit Mutuel came at a valuation above OLB’s expected IPO range, representing a significant win for the US-based private equity firm at a time when many European banks still trade below book value.

“The Apollo team is very happy with the outcome. It’s a strong reminder that private equity can generate value even in Germany’s banking sector,” a former investor said.

OLB, with total assets of €34bn, net profits of €270m, and a return on equity of 17.1%, grew its assets by 30% and net profits by 17% between the end of 2023 and 2024, highlighting operational success under Apollo’s ownership.

The deal also underscores broader challenges private equity firms have faced with German banks since the global financial crisis, where exits have proven difficult due to sluggish public market valuations and limited strategic buyer interest. Rivals such as Cerberus, Lone Star, Advent, and Centerbridge continue to grapple with long-horizon holdings like HCOB, IKB, and Aareal Bank.

The Crédit Mutuel transaction may pave the way for further consolidation, although larger cross-border bank mergers remain politically sensitive in Germany.

Source: Financial Times