Apollo Hybrid Value Raises $4.6bn for Second Flagship Fund

Apollo Hybrid Value business has closed its second flagship fund, Apollo Hybrid Value Fund II (HVF II), raising approximately $4.6bn.

The fund received strong support from both new and existing limited partners committing to the all-weather strategy, which seeks to provide flexible equity and debt capital solutions to companies.

Apollo Partner and Co-Head of Hybrid Value Rob Ruberton said, “We are very excited to close fundraising for HVF II, the second vintage in our flagship fund series. We are grateful for the continued support from our existing Limited Partners on the back of a successful Fund I and are thrilled to welcome a number of new investors into the franchise. We believe that our funds offer attractive, downside-protected returns that are differentiated from traditional private credit and private equity exposures. We are proud to have delivered strong results in our inaugural fund and look forward to building upon our success with our second fund.”

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Matt Michelini, Partner, Co-Head of Hybrid Value and Head of Asia-Pacific at Apollo, continued, “Our Hybrid Value franchise was built to provide companies with strategic capital in all market environments, using Apollo’s integrated platform to offer sizable, bespoke solutions and greater speed and certainty. The strengths of our Hybrid Value business are becoming increasingly apparent as more and more companies partner with us for value-added growth capital, structured equity solutions to fund M&A, liquidity during difficult periods, and value realization events for shareholders.”

HVF II’s $4.6bn in commitments is an increase of more than 40% over Hybrid Value Fund I, which raised $3.3bn in 2019. The Hybrid Value team’s strong focus on structuring capital preservation, attractive yield, and equity upside has made the strategy particularly attractive to insurance companies, sovereign wealth funds, pension funds, endowments and other institutional clients and high-net-worth individuals. Hybrid strategies were a key strategic growth area for Apollo as presented at its 2021 Investor Day.

The Hybrid Value team continues to find what it believes to be highly attractive risk-reward opportunities for its limited partners, committing more than $1bn of HVF II to-date, including preferred equity investments in WR Grace, Behavior Interactive and Global Schools Group, among others.

Source: Bakersfield

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