Apollo Global Management is leading an investor group committing more than $1bn to QXO, the building products distributor founded by serial dealmaker Brad Jacobs, according to people familiar with the matter cited by Bloomberg.

The investment will be structured as convertible preferred equity, with an initial conversion price of $23.25 per share, representing a premium to the company’s recent trading price. Franklin Templeton is among the other investors backing the transaction.

The capital is intended to support QXO’s acquisition strategy. One condition of the financing is that the company completes at least one acquisition by mid-July.

QXO was established in 2023 as a platform to consolidate the fragmented building products distribution sector. Its largest deal to date was the $11bn acquisition of Beacon Roofing Supply in 2025, which generated about $10bn in revenue at the time.

Apollo’s backing provides additional firepower for Jacobs’ expansion strategy, as private equity firms continue to deploy large pools of capital into industrial and distribution-focused platforms.

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