World various 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 supply fund open to U.S. accredited buyers, and Apollo S3 Non-public Markets Lux (ASPM Lux), which might be a part of Apollo’s Luxembourg-based various investments platform for buyers in EMEA, Asia and Latin America. ASPM Lux might be accessible to native buyers in a number of currencies.
The funds will spend money on secondaries throughout the capital stack and concentrate on diversification throughout vintages and managers.
“We consider these new choices will present distinct entry factors to personal market secondaries, leveraging the collective power of the Apollo Non-public Markets ecosystem and the Apollo S3 group, which has sourced over $160 billion in most of these transactions previously 12 months,” mentioned Steve Lessar, associate and co-head of Apollo’s sponsor and secondary options enterprise, in a press release. “It’s our view that secondaries can present a mixture of enticing attributes not generally present in different non-public market methods, and we’re happy to make that accessible to buyers.”
Stephanie Drescher, associate and chief consumer and product improvement officer with the agency, mentioned in a press release that the launch of ASPM “underscores Apollo’s dedication to offering entry to institutional-quality various choices tailor-made to people and wealth buyers.”
Throughout its latest investor day, Apollo executives revealed their five-year objectives of elevating $30 billion yearly from international wealth buyers, reaching $150 billion in AUM for the agency’s non-public wealth-centered merchandise and doubling the scale of their inside wealth group. 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 non-public credit score, non-public fairness, actual property and infrastructure. Since 2021, when Apollo began concentrating on the wealth channel, it has grown the group to greater than 100 workers 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 top of the 12 months throughout an organization earnings name in August.
“We won’t, as an trade, construct the infrastructure required to succeed in the huge, overwhelming majority of buyers who’re already properly served by conventional asset managers,” he mentioned. “I consider our position is … to be a components supplier for these items of our product that we will originate and we like having the entry and to be a three way partnership associate. And I can not let you know precisely how it will align, however it is likely one of the extra attention-grabbing components of our enterprise proper now.”
Apollo is just one of an rising cohort of different asset managers launching new semi-liquid funds aimed on the wealth channel. Final week, non-public markets funding administration agency Hamilton Lane introduced it was launching two evergreen funds concentrating on non-public markets infrastructure investments on behalf of accredited buyers.
