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Apollo Global Management, Inc. is an American global
private-equity firm
A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leve ...
. It provides
investment management and invests in credit, private equity, and real assets.
[ As of March 31, 2022, the company had $512 billion of assets under management, including $372 billion invested in credit, including mezzanine capital, ]hedge funds
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as sho ...
, non-performing loan A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as it reduces the profitability of banks, and ...
s, and collateralized loan obligation
Collateralized loan obligations (CLOs) are a form of securitization where payments from multiple middle sized and large business loans are pooled together and passed on to different classes of owners in various tranches. A CLO is a type of coll ...
s, $80.7 billion invested in private equity
In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a t ...
, and $46.2 billion invested in real assets, which includes real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...
and infrastructure. The company invests money on behalf of pension funds, financial endowments, and sovereign wealth fund
A sovereign wealth fund (SWF), sovereign investment fund, or social wealth fund is a state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, precious metals, or in alternative investments such as ...
s, as well as other institutional and individual investors.[ Since inception in 1990, private-equity funds managed by Apollo have produced a 24% internal rate of return (IRR) to investors, net of fees.
Apollo was founded in 1990 by ]Leon Black
Leon David Black (born July 31, 1951) is an American investor and the co-founder and former-CEO of the private equity firm Apollo Global Management. Black also served as the chairman of The Museum of Modern Art (MoMA) in New York City from Ju ...
, Josh Harris, and Marc Rowan
Marc J. Rowan (born August 19, 1962) is an American billionaire private equity investor. He is co-founder and CEO of Apollo Global Management.
Early life and education
Rowan was born to a Jewish family in 1962. His mother Barbara was a teacher ...
. Apollo is headquartered in the Solow Building
The Solow Building, also known as 9 West 57th Street, is a skyscraper in the Midtown Manhattan neighborhood of New York City. Completed in 1974 and designed by Gordon Bunshaft of Skidmore, Owings & Merrill, it is west of Fifth Avenue between ...
at 9 West 57th Street
The Solow Building, also known as 9 West 57th Street, is a skyscraper in the Midtown Manhattan neighborhood of New York City. Completed in 1974 and designed by Gordon Bunshaft of Skidmore, Owings & Merrill, it is west of Fifth Avenue betwee ...
in New York City, with offices across North America, Europe, and Asia. Among the most notable companies in which funds managed by the company have invested are ADT Inc., Barnes & Noble, CareerBuilder
CareerBuilder is an employment website founded in 1995 with offices in the United States, Canada, Europe, and Asia. In 2008, it had the largest market share among online employment websites in the United States, where it was founded. CareerBu ...
, Cox Media Group
CMG Media Corporation ( doing business as Cox Media Group) is an American media conglomerate principally owned by Apollo Global Management in conjunction with Cox Enterprises, which maintains a 29% minority stake in the company. The company pri ...
, Intrado
Intrado, formerly West Corporation, is an American telecommunications company. It became a subsidiary of Apollo Global Management on October 11, 2017.
Business Operations
Intrado reorganized in five main segments: Cloud Collaboration, Life and ...
, Rackspace
Rackspace Technology, Inc. is an American cloud computing company based in Windcrest, Texas, an inner suburb of San Antonio, Texas. The company also has offices in Blacksburg, Virginia, and Austin, Texas, as well as in Australia, Canada, United ...
, Redbox
Redbox Automated Retail LLC (stylized as redbox.) is an American video rental company specializing in DVD, Blu-ray, 4K UHD rentals, and formerly video games via automated retail kiosks. Redbox kiosks feature the company's signature red color ...
, Shutterfly
Shutterfly, LLC. is an American photography, photography products, and image sharing company, headquartered in Redwood City, California. The company is mainly known for custom photo printing services, including books featuring user-provided im ...
, Sirius Satellite Radio
Sirius Satellite Radio was a satellite radio (SDARS) and online radio service operating in North America, owned by Sirius XM Holdings.
Headquartered in New York City, with smaller studios in Los Angeles and Memphis, Sirius was officially lau ...
, Qdoba, Smart & Final
Smart & Final is a chain of warehouse-style food and supply stores based in Commerce, California, which developed through a series of mergers and expansions. The oldest of the combined companies, Hellman-Haas Grocery, was founded in 1871 in Los ...
, University of Phoenix
University of Phoenix (UoPX) is a private for-profit university headquartered in Phoenix, Arizona. Founded in 1976, the university confers certificates and degrees at the certificate, associate, bachelor's, master's, and doctoral degree level ...
, and Yahoo Inc.
In addition to its private funds, Apollo operates Apollo Investment Corporation (AIC), a US-domiciled publicly traded, private-equity, closed-end fund and business development company. AIC provides mezzanine debt, senior secured loan
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral, an ...
s, and equity investments to middle-market companies Authorities provide differing definitions of the middle-market or mid-market companies. While some authorities look to revenue generated by companies to define the middle market, other sources regard either asset size or number of employees as a be ...
, including public companies, although it historically has not invested in companies controlled by Apollo's private-equity funds.[
]
History
Apollo, originally referred to as Apollo Advisors, was founded in 1990, after the collapse of Drexel Burnham Lambert in February 1990, by Leon Black
Leon David Black (born July 31, 1951) is an American investor and the co-founder and former-CEO of the private equity firm Apollo Global Management. Black also served as the chairman of The Museum of Modern Art (MoMA) in New York City from Ju ...
, the former head of Drexel's mergers and acquisitions department, along with other Drexel alumni. Among the most notable founders are John Hannan, Drexel's former co-director of international finance; Craig Cogut, a lawyer who worked with Drexel's high-yield division in Los Angeles; and Arthur Bilger, the former head of the corporate finance department. Other founding partners included Marc Rowan
Marc J. Rowan (born August 19, 1962) is an American billionaire private equity investor. He is co-founder and CEO of Apollo Global Management.
Early life and education
Rowan was born to a Jewish family in 1962. His mother Barbara was a teacher ...
, Josh Harris, and Michael Gross, who both worked under Black in the mergers and acquisitions department, and Antony Ressler, who worked as a senior vice president in Drexel's high-yield department with responsibility for the new issue/syndicate desk.
Within six months after the collapse of Drexel, the Apollo launched Apollo Investment Fund L.P., the first of its private-equity investment funds, formed to make investments in distressed companies. Apollo raised around $400 million of investor commitments based on Leon Black's reputation as a prominent lieutenant of Michael Milken
Michael Robert Milken (born July 4, 1946) is an American financier. He is known for his role in the development of the market for high-yield bonds ("junk bonds"), and his conviction and sentence following a guilty plea on felony charges for vio ...
and a key player in the buyout boom of the 1980s.[
Lion Advisors (or Lion Capital) was founded in 1990 to provide investment services to Credit Lyonnais and foreign institutions, seeking to profit from depressed prices in the high-yield market. In 1992, Lion entered into a more formal arrangement to manage the $3 billion high-yield portfolio for Credit Lyonnais which together with a consortium of other international investors provided the capital for Lion's investment activities. Lion Advisors was replaced by ]Ares Management
Ares Management Corporation is an American global alternative investment manager operating in the credit, private equity and real estate markets. The company was founded in 1997 and is headquartered in Los Angeles, California, with additional of ...
.
1990s
At the time of Apollo's founding, little financing was available for new leveraged buyout
A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money ( leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loa ...
s and Apollo turned, instead, to a strategy of distressed-to-control takeovers. Apollo purchased distressed securities Distressed securities are securities over companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy. As far as debt securities, this is called distressed debt. Purchasing or holding s ...
, which could be converted into a controlling interest in the equity of the company through a bankruptcy reorganization or other restructuring. Apollo used distressed debt as an entry point, enabling the firm to invest in such firms as Vail Resorts
Vail Resorts, Inc. is an American mountain resort company headquartered in Broomfield, Colorado. The company is divided into three divisions. The mountain segment owns and operates 40 mountain resorts in four countries, Vail Resorts Hospitality o ...
, Walter Industries, Culligan
Culligan is a global water treatment company with network of dealers and direct operations spawn across 90 countries with 1,000 dealers, over 600 in North America alone, and over 7,500 employees.
History
Culligan was founded in 1936 by Emmett C ...
, and Samsonite
Samsonite International S.A. () is an American premium luggage manufacturer and retailer, with products ranging from large suitcases to small toiletries bags and briefcases. The company was founded in Denver, Colorado, United States.
Its r ...
.
Apollo acquired interests in companies that Drexel had helped finance by purchasing high-yield bond
In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events ...
s from failed savings and loan
Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...
s and insurance companies. Apollo acquired several large portfolios of assets from the U.S. government's Resolution Trust Corporation
The Resolution Trust Corporation (RTC) was a U.S. government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets ...
. One of Apollo's earliest and most successful deals involved the acquisition of Executive Life Insurance Company's bond portfolio. Using this vehicle, Apollo purchased the Executive Life portfolio, profiting when the value of high-yield bonds recovered, but also resulting in a variety of state regulatory issues for Apollo and Credit Lyonnais over the purchase.
In 1993, Apollo Real Estate Advisers was founded in collaboration with William Mack to seek opportunities in the U.S. property markets.
In April 1993, Apollo Real Estate Investment Fund, L.P., the first in a family of real estate "opportunity funds", was closed with $500 million of investor commitments. In 2000, Apollo exited the partnership, which continued to operate as Apollo Real Estate Advisers until changing its name to AREA Property Partners effective January 15, 2009. That firm was then owned and controlled by its remaining principals, including William Mack, Lee Neibart, William Benjamin, John Jacobsson, Stuart Koenig, and Richard Mack.
In 1995, Apollo raised its third private-equity fund, Apollo Investment Fund III, with $1.5 billion of investor commitments from investors that included CalPERS
The California Public Employees' Retirement System (CalPERS) is an agency in the California executive branch that "manages pension and health benefits for more than 1.5 million California public employees, retirees, and their families".CalPERSFa ...
and the General Motors pension fund. Fund III was only an average performer for private-equity funds of its vintage. Among the investments made in Fund III (invested through 1998) were: Alliance Imaging, Allied Waste Industries
Allied Waste Industries, Inc. was a Fortune 500 company headquartered in Phoenix, Arizona. A vertically integrated company that owned and operated solid waste collection businesses, recycling facilities, and landfills, it was a leader in the so ...
, Breuners Home Furnishings
Breuners Home Furnishings was a chain of furniture stores in Southwestern United States for 148 years before declaring bankruptcy in 2004.
Founded in California during the California Gold Rush in the mid-19th century, its stores served California ...
, Levitz Furniture
Levitz Furniture was a nationwide chain of American furniture stores that helped create the "furniture warehouse" genre of retail furniture sales. It was in business for nearly 100 years before liquidating in bankruptcy in early 2008.
History
...
, Communications Corporation of America
Communications Corporation of America (also known as ComCorp) was a broadcasting company in the United States that owned television stations in smaller markets. The company was headquartered in Lafayette, Louisiana. It owned and/or operated 20 s ...
, Dominick's
Dominick's was a Chicago-area grocery store chain and subsidiary of Safeway Inc. Dominick's distribution center was located in Northlake, Illinois, while its management offices were located in Oak Brook, Illinois.
History
Founding
Dominick DiM ...
, Ralphs
Ralphs is an American supermarket chain in Southern California. The largest subsidiary of Cincinnati-based Kroger, it is the oldest such chain west of the Mississippi River. Kroger also operates stores under the Food 4 Less and Foods Co. nam ...
(acquired Apollo's Food-4-Less), Move.com, NRT Incorporated
Anywhere Advisors (formerly Realogy Brokerage Group, NRT, or National Realty Trust) is a residential real estate brokerage company in the United States of America. A subsidiary of Anywhere Real Estate, Inc. (formerly Realogy Holdings Corp.), it ...
, Pillowtex Corporation, Telemundo
Telemundo (; formerly NetSpan) is an American Spanish-language terrestrial television network owned by NBCUniversal Telemundo Enterprises, a division of NBCUniversal, which in turn is owned by Comcast. It provides content nationally with pr ...
, and WMC Mortgage Corporation
WMC Mortgage Corporation, also known as WMC or WMC Direct, was a Woodland Hills, California
based wholesale originator of subprime residential mortgages.
The company was founded in 1955 as Pacific Western Mortgage Company. It went through several ...
.
Also in 1995, Apollo founding partner Craig Cogut left the firm to found Pegasus Capital Advisors. Since inception, Pegasus has raised $1.8 billion in four private-equity funds focused on investments in middle-market companies Authorities provide differing definitions of the middle-market or mid-market companies. While some authorities look to revenue generated by companies to define the middle market, other sources regard either asset size or number of employees as a be ...
in financial distress.
In 1997, Ares Management
Ares Management Corporation is an American global alternative investment manager operating in the credit, private equity and real estate markets. The company was founded in 1997 and is headquartered in Los Angeles, California, with additional of ...
was founded by Antony Ressler and John H. Kissick, both partners at Apollo, as well as Bennett Rosenthal, who joined the group from the global leveraged finance group at Merrill Lynch, to manage a $1.2 billion market value collateralized debt obligation vehicle. Ares I and II which were raised were structured as market value CLOs. Ares III-Ares X were structured as cash flow CLOs. In 2002, Ares completed a corporate spin-off
A corporate spin-off, also known as a spin-out, or starburst or hive-off, is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active.
Characte ...
from Apollo management. Although technically the founders of Ares had completed a spinout with the formation of the firm in 1997, they had maintained a close relationship with Apollo over its first five years and operated as the West Coast affiliate of Apollo. Shortly thereafter, Ares completed fundraising for Ares Corporate Opportunities Fund, a special-situations investment fund with $750 million of capital under management.[
In 1998, during the ]dot-com bubble
The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet.
Between 1995 and its peak in March 2000, the Nasdaq Compo ...
, Apollo raised Apollo Investment Fund IV with $3.6 billion of investor commitments. As of April 8, 2008, the fund had generated a 10% IRR net of fees.[ Among the investments made in Fund IV (invested through 2001) were: ]Allied Waste Industries
Allied Waste Industries, Inc. was a Fortune 500 company headquartered in Phoenix, Arizona. A vertically integrated company that owned and operated solid waste collection businesses, recycling facilities, and landfills, it was a leader in the so ...
, AMC Entertainment
AMC Entertainment Holdings, Inc. ( d/b/a AMC Theatres, originally an abbreviation for American Multi-Cinema; often referred to simply as AMC and known in some countries as AMC Cinemas or AMC Multi-Cinemas) is an American movie theater chain fo ...
, Berlitz International, Clark Retail Enterprises, Corporate Express ( Buhrmann), Encompass Services Corporation, National Financial Partners, Pacer International, Rent-A-Center
Rent-A-Center (commonly referred to as RAC) is an American public furniture and electronics rent-to-own company based in Plano, Texas. The company was incorporated in 1986 and as of 2014 operates approximately 2,972 company-owned stores in the Un ...
, Resolution Performance Products
Hexion Inc. or Hexion (previously Momentive Specialty Chemicals) is a chemical company based in Columbus, Ohio. It produces thermoset resins and related technologies and specialty products.
Hexion is organized into two divisions: the Epoxy, Phe ...
, Resolution Specialty Materials
Hexion Inc. or Hexion (previously Momentive Specialty Chemicals) is a chemical company based in Columbus, Ohio. It produces thermoset resins and related technologies and specialty products.
Hexion is organized into two divisions: the Epoxy, Phe ...
, Sirius Satellite Radio
Sirius Satellite Radio was a satellite radio (SDARS) and online radio service operating in North America, owned by Sirius XM Holdings.
Headquartered in New York City, with smaller studios in Los Angeles and Memphis, Sirius was officially lau ...
, SkyTerra Communications, United Rentals
United Rentals, Inc. () is the world's largest equipment rental company, with about 13 percent of the North American market share as of 2019. It owns the largest rental fleet in the world with approximately 4,700 classes of equipment totaling abo ...
, and Wyndham Worldwide
Travel + Leisure Co. (formerly Wyndham Destinations, Inc. and Wyndham Worldwide Corporation) is an American timeshare company headquartered in Orlando, Florida. It develops, sells, and manages timeshare properties under several vacation ownershi ...
.
2000–2005
In April 2001, Apollo raised Apollo Investment Fund V with $3.7 billion of investor commitments. As of April 8, 2008, the fund had generated a 54% IRR net of fees. Among the investments made in Fund V (invested through 2006) were Affinion Group
CXLoyalty (formerly Affinion Group and CUC International, CUC) is a private company based in Stamford, Connecticut that provides customer engagement and loyalty programs. Affinion designs, markets, and services programs that deal with customer r ...
, AMC Entertainment
AMC Entertainment Holdings, Inc. ( d/b/a AMC Theatres, originally an abbreviation for American Multi-Cinema; often referred to simply as AMC and known in some countries as AMC Cinemas or AMC Multi-Cinemas) is an American movie theater chain fo ...
, Berry Plastics
Berry Global, Inc is a Fortune 500 global manufacturer and marketer of plastic packaging products. Headquartered in Evansville, Indiana, it has over 265+ facilities across the globe and more than 46,000+ employees, With $13 billion in revenues in ...
, Cablecom, Compass Minerals
Compass Minerals International, Inc is a public company that, through its subsidiaries, is a leading producer of minerals, including salt, magnesium chloride, sulfate of potash and other plant nutrition products. Based in Overland Park, Kansas; ...
, General Nutrition Centers
GNC Holdings, LLC (abbreviated GNC; alternatively General Nutrition Centers) is a retail company based in Pittsburgh, Pennsylvania. It specializes in health and nutrition related products, including vitamins, supplements, minerals, herbs, sports ...
(GNC), Goodman Global, Hexion Specialty Chemicals ( Borden), Intelsat, Linens 'n Things
Linens 'n Things was a Clifton, New Jersey-based big-box retailer specializing in home textiles, housewares, and decorative home accessories. The chain operated 571 stores in 47 U.S. states and six Canadian provinces, and had 7,300 employees as ...
, Metals USA, Nalco Investment Holdings, Sourcecorp, Spectrasite Communications, and Unity Media.
Although the founders of Ares had completed a corporate spin-off
A corporate spin-off, also known as a spin-out, or starburst or hive-off, is a type of corporate action where a company "splits off" a section as a separate business or creates a second incarnation, even if the first is still active.
Characte ...
with the formation of the firm in 1997, they had initially maintained a close relationship with Apollo and operated as the West Coast affiliate of Apollo.
In 2002, when Ares raised its first corporate opportunities fund, the firm announced that it would separate from its former parent company. The timing of this separation also coincided with Apollo's legal difficulties with the State of California over its purchase of Executive Life Insurance Company in 1991. In 2002, Attorney General of California
The attorney general of California is the state attorney general of the Government of California. The officer's duty is to ensure that "the laws of the state are uniformly and adequately enforced" ( Constitution of California, Article V, Secti ...
Bill Lockyer accused Apollo, Leon Black, and an investor group led by French bank Credit Lyonnais
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...
of violating California law by having a foreign government-owned bank acquire the assets and bond portfolio of Executive Life Insurance Co. in 1991. Foreign banks are not allowed to own California insurance companies.
Following the spin-off of Ares in 2002, Apollo developed two new affiliates to continue its investment activities in the capital markets. The first of these new affiliates, founded in 2003, was Apollo Distressed Investment Fund (DIF) Management, a credit-opportunity investment vehicle.
In 2004, Apollo Real Estate acquired the Value Enhancement Funds family of investment vehicles to broaden its offerings in the "value-added" segment of the real-estate investment spectrum.[
In April 2004, Apollo raised $930 million through an ]initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
for a listed business development company, Apollo Investment Corporation. AIC provides mezzanine debt, senior secured loan
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral, an ...
s, and equity investments to middle-market companies, including public companies.
In September 2004, investment funds managed by Apollo and Sterling Partners acquired Connections Academy
Connections Academy, a for-profit corporate provider of online school products and services to virtual schools for grades K-12, including full-time online schools with the name Connections Academy, in the United States and International Connectio ...
. It was sold in 2011 for $400 million.
2005–2010
In 2005, Apollo formed Hexion Specialty Chemicals through the merger of Borden, Inc., Resolution Performance Products LLC, and Resolution Specialty Materials, LLC, and the acquisition of Bakelite AG. Hexion announced in July 2007 that it was acquiring Huntsman Corporation, a major specialty-chemicals company, in a $6.5 billion leveraged buyout. Hexion announced in June 2008 it would refuse to close the deal, prompting a series of legal actions. The transaction was terminated on December 14 after a settlement between Hexion and Huntsman, wherein they were required to pay Huntsman $1 billion to drop fraud charges that would have potentially sent the CEO of Apollo to prison.
Between 2005 and 2007, the private-equity market was booming, with new "largest buyout" records set and surpassed several times in an 18-month window. Although Apollo was involved in a number of notable and large buyouts, the firm avoided the very largest transactions during the time. Among Apollo's most notable investments during this period were Harrah's Entertainment
Harrah's Entertainment (later named Caesars Entertainment Corporation, previously The Promus Companies) was an American casino and hotel company founded in Reno, Nevada, and based in Paradise, Nevada, that operated over 50 properties and seven g ...
, a gaming and casino company; Norwegian Cruise Line, a cruise line operator; Claire's Stores, a retailer of costume jewelry; and Realogy, a real-estate franchisor.
In May 2006, Apollo announced the acquisition of Rexnord Corporation
Rexnord Corporation is a Milwaukee, Wisconsin-based subsidiary of Regal Rexnord Corporation. It was founded in 1891 by Christopher Levalley and incorporated in 1892 as the Chain Belt Company. It had "$67.5 million in profit and $1.9 billion in sa ...
, a manufacturer of precision motion-technology products, primarily focused on power transmission, from private-equity firm The Carlyle Group
The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and ...
for $1.825 billion.
In June 2006, Apollo and Graham Partners announced the acquisition of Berry Plastics
Berry Global, Inc is a Fortune 500 global manufacturer and marketer of plastic packaging products. Headquartered in Evansville, Indiana, it has over 265+ facilities across the globe and more than 46,000+ employees, With $13 billion in revenues in ...
, a maker of plastic containers, for $2.25 billion from Goldman Sachs Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally. The group, which is based in New York City, was founded in 1986. As of 2019, GS Capital Partners had ...
and JPMorgan Partners
CCMP Capital is an American private equity investment firm that focuses on leveraged buyout and growth capital transactions. Formerly known as JP Morgan Partners, the investment professionals of JP Morgan Partners separated from JPMorgan Chase o ...
.
In June 2006, Apollo acquired Momentive Performance Materials, General Electric
General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable en ...
's Advanced Materials (Silicones & Quartz) business for approximately $3.8 billion. It was sold in May 2019.
In August 2006, TNT N.V. announced that it had agreed to the sale of its logistics division to Apollo for $1.9 billion. The business was rebranded as CEVA in November 2007.
In August 2006, Apollo launched a $2 billion vehicle in Europe, AP Alternative Assets.[ It was a Guernsey-domiciled publicly traded, private-equity closed-end, limited partnership, managed by Apollo Alternative Assets, an affiliate of Apollo Management. Apollo initially attempted to raise $2.5 billion for the public vehicle, but fell short when it offered the shares in June 2006, raising only $1.5 billion.][ Apollo raised an additional $500 million via private placements in the weeks following that sale. AAA was formed to invest alongside Apollo's main private-equity funds and hedge funds.][ AAA's investment portfolio was made up of a mix of private-equity and capital-markets investments. It was liquidated in 2020.
In October 2006, Apollo announced a $990 million leveraged buyout of ]Jacuzzi Brands
Jacuzzi Brands LLC (; ), through its subsidiaries, is a global manufacturer and distributor of branded baths, hot tubs, pools, saunas and, formerly, aircraft. Founded in 1915 by the Italian family of the same name, Jacuzzi is a federally regist ...
, a manufacturer of whirlpool baths.
In 2006, Apollo acquired International Paper
The International Paper Company is an American pulp and paper company, the largest such company in the world. It has approximately 56,000 employees, and is headquartered in Memphis, Tennessee.
History
The company was incorporated January 31 ...
's coated paper and supercalendered paper business for $1.4 billion, renaming the business Verso Paper. Verso is the second-largest producer for the North American magazine publishing and catalog/commercial print markets. In May 2008, Verso became a public company
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...
via an IPO.
In February 2007, Apollo acquired Oceania Cruises
Oceania Cruises is a cruise line based in Miami, Florida, that operates six cruise ships on worldwide itineraries. It typically offers cruises that last between 10 and 14 days, but is also known for its long cruises lasting up to 195 days. The ...
for $850 million and provided additional capital to fund the expansion of the company with the purchase of two new cruise ships.!
In February 2007, Apollo announced the acquisition of the Smart & Final
Smart & Final is a chain of warehouse-style food and supply stores based in Commerce, California, which developed through a series of mergers and expansions. The oldest of the combined companies, Hellman-Haas Grocery, was founded in 1871 in Los ...
chain of warehouse-style food and supply stores. In June 2007, Smart & Final completed the acquisition of the Henry's Marketplace chain of " farmers market" style food retailers from Wild Oats Markets as part of that company's acquisition by Whole Foods Market
Whole Foods Market IP, Inc., a subsidiary of Amazon, is an upscale American multinational supermarket chain headquartered in Austin, Texas, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives. A US ...
. In 2011, the Henry's chain was merged with Sprouts Farmers Market
Sprouts Farmers Market, Inc., is a supermarket chain headquartered in Phoenix, Arizona, USA. The grocer offers a wide selection of natural and organic foods, including fresh produce, bulk foods, vitamins and supplements, packaged groceries, mea ...
, which, like the Henry's markets, had been founded by Henry Boney.
In March 2007, Apollo announced the $3.1 billion leveraged buyouts of costume jewelry retailer Claire's Stores. In 2008, Claire's experienced financial difficulty amid the slump in consumer spending.
In April 2007, Apollo acquired Noranda Aluminum, the US aluminum business of Xstrata
Xstrata plc was an Anglo-Swiss multinational mining company headquartered in Zug, Switzerland and with its registered office in London, United Kingdom. It was a major producer of coal (and the world's largest exporter of thermal coal), copper, ...
for $1.15 billion. Noranda Aluminum includes a primary smelter and three rolling mills in Tennessee, North Carolina, and Arkansas along with other operations.
In April 2007, Apollo acquired Realogy, a franchisor that owns Coldwell Banker, Century 21, and Sotheby's International Realty, for $8.5 billion. As the United States housing market correction accelerated in 2008, Realogy faced financial pressures due to its debt load. In November 2008, Realogy launched an exchange offer for a portion of its debt to provide additional flexibility, prompting a lawsuit from Carl Icahn
Carl Celian Icahn (; born February 16, 1936) is an American financier. He is the founder and controlling shareholder of Icahn Enterprises, a public company and diversified conglomerate holding company based in Sunny Isles Beach. Icahn takes la ...
. In 2013, Apollo sold out of this investment, making a profit of $1.3 billion.
In May 2007, Apollo acquired Countrywide plc, a provider of residential property-related services in the UK, formerly known as Hambro Countrywide (1988) and Countrywide Assured Group (1998) for $1.05 billion (not related to Countrywide Financial
Countrywide is one of the UK's largest integrated property services group including residential property surveying, a collaboration of estate agents, and corporate services. It employs circa 8,500 personnel nationwide, working across 650+ estat ...
).
In November 2007, the company sold 9% of itself to the Abu Dhabi Investment Authority.[
In January 2008, Apollo and ]TPG Capital
TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American investment company based in Fort Worth, Texas. The private equity firm is focused on leveraged buyouts and growth capital. TPG manages investment funds in growth c ...
acquired Harrah's Entertainment
Harrah's Entertainment (later named Caesars Entertainment Corporation, previously The Promus Companies) was an American casino and hotel company founded in Reno, Nevada, and based in Paradise, Nevada, that operated over 50 properties and seven g ...
for $27.4 billion, including the assumption of existing debt.
In January 2008, Apollo invested $1 billion in Norwegian Cruise Line to support a recapitalization of the company's balance sheet. In December 2018, Apollo cashed out of this investment.
In February 2008, Apollo acquired Regent Seven Seas Cruises
Regent Seven Seas Cruises (RSSC), formerly known as Radisson Seven Seas Cruises, is a luxury cruise line headquartered in Miami, Florida.
Since September 2014, Regent Seven Seas Cruises has been a wholly owned subsidiary owned of Norwegian Cruis ...
from Carlson Companies
Carlson is an American privately held company headquartered in Minnetonka, Minnesota, United States. Its primary subsidiaries are CWT, a travel management company, and Carlson Private Capital Partners, a family office that manages the owners' wea ...
for $1 billion. Following the purchase, Apollo ordered a new ship for Regent.
In April 2008, Apollo, TPG Capital
TPG Inc., previously known as Texas Pacific Group and TPG Capital, is an American investment company based in Fort Worth, Texas. The private equity firm is focused on leveraged buyouts and growth capital. TPG manages investment funds in growth c ...
, and The Blackstone Group
Blackstone Inc. is an American alternative investment management company based in New York City. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate b ...
acquired $12.5 billion of bank loans from Citigroup. The portfolio comprised primarily senior secured loans that had been made to finance leveraged-buyout transactions at the peak of the market. Citigroup had been unable to syndicate the loans before the onset of the credit crunch. The loans were reported to have been sold in the "mid-80 cents on the dollar" relative to face value. In late 2008, Apollo received margin call
''Margin Call'' is a 2011 American drama film written and directed by J. C. Chandor in his feature directorial debut. The principal story takes place over a 24-hour period at a large Wall Street investment bank during the initial stages of the ...
s associated with the financing of its purchase of certain loan portfolios as the values of the loans decreased.
In April 2008, Apollo filed a Form S-1
Form S-1 is an SEC filing used by companies planning on going public to register their securities with the U.S. Securities and Exchange Commission (SEC) as the "registration statement by the Securities Act of 1933". The S-1 contains the basic ...
with the U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
in preparation for an IPO on the New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...
.[
In May 2008, Apollo invested in Vantium, a company that buys residential mortgage assets as part of a strategy to profit from the United States housing market correction.
In July 2008, the company closed a $758 million value-add fund.]
Also in 2008, Apollo opened an office in India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
, its first office in Asia.
During the financial crisis of 2007–2008
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
, several of Apollo's investments came under pressure. Apollo's 2005 investment in the struggling US retailer Linens 'n Things
Linens 'n Things was a Clifton, New Jersey-based big-box retailer specializing in home textiles, housewares, and decorative home accessories. The chain operated 571 stores in 47 U.S. states and six Canadian provinces, and had 7,300 employees as ...
suffered from a significant debt burden and softening consumer demand. In May 2008, Linens filed for bankruptcy protection, costing Apollo all of its $365 million investment in the company. In 2009, the company was sued by a noteholder claiming mismanagement.
Apollo exercised its " PIK toggle" option at Claire's to shut off cash interest payments to its bondholders and instead issue more debt, to provide the company with additional financial flexibility.
In December 2008, Apollo completed fundraising for its latest fund, Apollo Investment Fund VII, with roughly $14.7 billion of investor commitments. Apollo had been targeting $15 billion, but had been in fundraising for more than 16 months, with the bulk of the capital raised in 2007.
In November 2009, Liberty Global acquired Unity Media GMBH; funds managed by Apollo owned a 31% interest.
In December 2009, Apollo announced the acquisition of Cedar Fair Entertainment Company
Cedar Fair, L.P., formally Cedar Fair Entertainment Company, is a publicly traded master limited partnership headquartered at its Cedar Point amusement park in Sandusky, Ohio. The company owns and operates eleven amusement parks, nine include ...
for $635 million and assumed debt valuing the company at $2.4 billion. In April 2010, the deal was terminated due to poor shareholder response.
2011–2017
In January 2011, Apollo acquired 51% of Alcan Engineered Products from Rio Tinto Group.
On March 29, 2011, Apollo became a public company
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...
via an IPO.
In June 2011, Apollo acquired CKx.
In March 2012, Apollo acquired the unprofitable Great Wolf Resorts
Great Wolf Resorts (formerly known as Great Wolf Lodge) is a chain of indoor water parks. The company owns and operates its family resorts under the Great Wolf Lodge brand. In addition to a water park, each resort features restaurants, arcades, ...
for $703 million.
In November 2012, Apollo acquired McGraw-Hill Education for $2.5 billion.
In 2013, Apollo acquired Pitney Bowes
Pitney Bowes Inc. is an American technology company most known for its postage meters and other mailing equipment and services, and with expansions into e-commerce, software, and other technologies. The company was founded by Arthur Pitney, who ...
Management Services (PBMS) for $400 million. From PBMS, Apollo formed Novitex Enterprise Solutions. Novitex is a document-outsourcing provider that manages business-critical services for over 500 companies across 10 industries. In 2017, it was merged into Exela Technologies.
On March 11, 2013, Apollo Global Management made the only bid for the snacks business of Hostess Brands
Hostess Brands is an American-based bakery company formed in 2013. It owns several bakeries in the United States that produce snack cakes under the Hostess and Dolly Madison brand names and its Canadian subsidiary, Voortman Cookies Limited, pr ...
, including Twinkies
A Twinkie is an American snack cake, described as "golden sponge cake with a creamy filling". It was formerly made and distributed by Hostess Brands. The brand is currently owned by Hostess Brands, Inc. (), having been formerly owned by privat ...
, for $410 million.
In December 2013, Apollo bought a portfolio of Irish home loans from Lloyds Bank
Lloyds Bank plc is a British retail and commercial bank with branches across England and Wales. It has traditionally been considered one of the " Big Four" clearing banks. Lloyds Bank is the largest retail bank in Britain, and has an exte ...
for €307 million, less than half their face value. The shares were bought by an Apollo Global Management subsidiary, Tanager Limited.
In January 2014, Apollo acquired Chuck E. Cheese's
Chuck E. Cheese (formerly known as Chuck E. Cheese's Pizza Time Theatre, Chuck E. Cheese's Pizza and simply Chuck E. Cheese's) is an American family entertainment center and pizza restaurant chain founded in 1977 by Atari's co-founder Nolan Bu ...
for about $1 billion.
In October 2014, Apollo merged its Endemol television studio with 21st Century Fox's Shine Group. The merged company became Endemol Shine Group
Endemol Shine Group B.V. (stylized in all spaceless) was a Dutch production and distribution company of scripted and non-scripted content, responsible for programmes such as '' Big Brother'', '' Deal or No Deal'', '' The Money Drop'', '' Fear F ...
, with AGM and Fox each owning half of the studio.
In May 2015, Centerbridge Partners
Centerbridge Partners is a multi-strategy private investment firm focused on leveraged buyouts and distressed securities.
The firm manages over $32 billion of assets acquired Great Wolf Resorts from Apollo for $1.35 billion.
In June 2015, Apollo agreed to acquire OM Group for $1.03 billion.
Also in June 2015, Apollo won the bidding during an auction for Saint-Gobain
Compagnie de Saint-Gobain S.A. () is a French multinational corporation, founded in 1665 in Paris and headquartered on the outskirts of Paris, at La Défense and in Courbevoie. Originally a mirror manufacturer, it now also produces a variety of ...
's Verallia glass bottle-manufacturing unit for €2.95 billion.
In February 2016, Apollo agreed to acquire The ADT Corporation
ADT Inc., formerly The ADT Corporation, is an American company that provides residential, small and large business electronic security, fire protection, and other related alarm monitoring services throughout the United States. The corporate hea ...
for $6.9 billion.
In June 2016, funds managed by Apollo Global Management acquired Diamond Resorts International
Diamond Resorts is a timeshare company headquartered in Las Vegas, Nevada, with regional offices in Orlando, Florida and Lancaster, United Kingdom. The company has a network of more than 379 vacation destinations in 35 countries around the world ...
. It was sold to Hilton Worldwide in August 2021.
In November 2016, investment funds managed by Apollo acquired Rackspace
Rackspace Technology, Inc. is an American cloud computing company based in Windcrest, Texas, an inner suburb of San Antonio, Texas. The company also has offices in Blacksburg, Virginia, and Austin, Texas, as well as in Australia, Canada, United ...
.
In 2016, investment funds managed by Apollo acquired Constellis
Triple Canopy, Inc., is an American private security company that provides integrated security, mission support and risk management services to corporate, government and nonprofit clients. The firm was founded in May 2003 by Army Special Force ...
for $1 billion. Constellis is a private military contractor that was created as a result of a merger between rival contractors Triple Canopy
Triple Canopy, Inc., is an American private security company that provides integrated security, mission support and risk management services to corporate, government and nonprofit clients. The firm was founded in May 2003 by United States Army, ...
and Academi
Blackwater was an American private military company founded on December 26, 1996 by former Navy SEAL officer Erik Prince. It was renamed Xe Services in 2009 and known as Academi since 2011 after it was acquired by a group of private investors ...
in 2014. Academi, founded by Erik Prince
Erik Dean Prince (born June 6, 1969) is an American businessman, former United States Navy SEALs, U.S. Navy SEAL Officer (armed forces), officer, and the founder of the private military company Blackwater USA, Blackwater. He served as Blackwat ...
and formerly known as Blackwater USA, is best known for its role in the Nisour Square massacre, where Blackwater guards killed 17 Iraqi civilians and injured 20.
In February 2017, Apollo Education Group, the parent company of the University of Phoenix
University of Phoenix (UoPX) is a private for-profit university headquartered in Phoenix, Arizona. Founded in 1976, the university confers certificates and degrees at the certificate, associate, bachelor's, master's, and doctoral degree level ...
, was acquired by investment funds managed by Apollo and the Vistria Group, for $1.14 billion.
In June 2017, investment funds managed by Apollo acquired 80.1% of Philips
Koninklijke Philips N.V. (), commonly shortened to Philips, is a Dutch multinational conglomerate corporation that was founded in Eindhoven in 1891. Since 1997, it has been mostly headquartered in Amsterdam, though the Benelux headquarters i ...
Lumileds
Lumileds is a lighting company that develops, manufactures, and distributes LEDs, light bulbs, and related products for automotive lighting, general lighting, and specialty lighting. Lumileds operates as a private company, having funds affili ...
division for $1.5 billion.
In October 2017, Apollo acquired West Corp for about $2 billion.
In November 2017, Apollo lent $184 million to Kushner Companies
Kushner Companies LLC is an American real estate developer in the New York City metropolitan area. The company's biggest presence is in the New Jersey residential market.
A study published in December 2017 by ''Bloomberg News'' indicated that ...
to refinance the mortgage on a Chicago skyscraper.
2018–2019
In March 2018, Apollo acquired Mexican-style restaurant chain Qdoba from Jack in the Box.
In June 2018, funds managed by Apollo and Värde Partners acquired a majority of OneMain Financial.
In October 2018, funds managed by Apollo Global Management acquired a portfolio of $1 billion in energy investments from GE Capital's Energy Financial Services unit.
In February 2019, AGM was in talks to buy Nexstar Media Group for over $1 billion. However, on February 14, 2019, Cox Media Group
CMG Media Corporation ( doing business as Cox Media Group) is an American media conglomerate principally owned by Apollo Global Management in conjunction with Cox Enterprises, which maintains a 29% minority stake in the company. The company pri ...
announced that it was selling its 14 television stations to Apollo. In March 2019 filings with the Federal Communications Commission (FCC), Apollo disclosed that, through the newly formed Terrier Media, the Cox stations would be acquired for $3.1 billion (to be reduced by the value of a minority equity stake in Terrier that will be retained by Cox Enterprises); Terrier will also concurrently acquire Northwest Broadcasting, giving the company 25 television stations. On June 26, 2019, Cox announced that its 60 radio stations, as well as its national advertising business CoxReps, and local OTT advertising agency Gamut, would also be acquired by the new company, which concurrently announced that it would retain the Cox Media Group name instead of Terrier Media. On February 10, 2020, Cox Enterprises bought back the Ohio newspapers it sold to AGM. The FCC required Apollo to reduce the daily newspapers to three days or sell them.
In February 2019, Apollo acquired Aspen Insurance for $2.6 billion.
On April 16, 2019, Apollo announced that it would once again acquire Smart & Final
Smart & Final is a chain of warehouse-style food and supply stores based in Commerce, California, which developed through a series of mergers and expansions. The oldest of the combined companies, Hellman-Haas Grocery, was founded in 1871 in Los ...
for $1.1 billion.
On June 10, 2019, Apollo announced that it would acquire Shutterfly
Shutterfly, LLC. is an American photography, photography products, and image sharing company, headquartered in Redwood City, California. The company is mainly known for custom photo printing services, including books featuring user-provided im ...
for $2.7 billion, as well as its competitor Snapfish in a separate transaction valued at around $300 million, with District Photo as a minority stakeholder.
In August 2019, Apollo agreed to provide around $1.8 billion of debt financing to support New Media Investment Group's acquisition of Gannett. On October 23, 2019, AGM announced it signed agreements to take a 48.6% stake in Italian gambling group Gamenet SPA.
In November 2019, investment funds managed by Apollo acquired Florida-based Tech Data Corp. for $5.4 billion from Warren Buffett's Berkshire Hathaway.
In December 2019, investment funds managed by Apollo acquired Cox Media Group
CMG Media Corporation ( doing business as Cox Media Group) is an American media conglomerate principally owned by Apollo Global Management in conjunction with Cox Enterprises, which maintains a 29% minority stake in the company. The company pri ...
for $3 billion, acquiring Cox's 13 television stations, 54 radio stations, three newspapers, national television advertising business – CoxReps, and local OTT advertising business – Gamut. Smart Media.
2020–present
In February 2020, investment funds managed by Apollo acquired Covis from Cerberus Capital Management.
In April 2020, AGM announced that it would invest $300 million in Cimpress, an Irish-domiciled printing group that owns Vistaprint.
In May 2020, Apollo purchased $1.75 billion of preferred stock in Albertsons Companies.
In July 2020, Apollo launched a $12 billion platform to make big loans.
On July 3, 2020, Apollo and The Walt Disney Company sold Endemol Shine Group
Endemol Shine Group B.V. (stylized in all spaceless) was a Dutch production and distribution company of scripted and non-scripted content, responsible for programmes such as '' Big Brother'', '' Deal or No Deal'', '' The Money Drop'', '' Fear F ...
to French studio Banijay Group.
In September 2020, Apollo entered into a $5.5 billion real-estate investment partnership with the Abu Dhabi National Oil Company (ADNOC).
In March 2021, Apollo Investment Corporation closed a $110 million mezzanine credit facility between LendingPoint and MidCap Financial Trust.
In March 2021, Leon Black resigned as CEO and chairman after revelations that he paid Jeffrey Epstein $158 million for personal tax-related advice between 2012 and 2017. He was replaced as CEO by Marc Rowan.
In April 2021, Apollo launched Apollo Origination Partnership, a $1.8 billion direct-lending fund seeking unlevered returns of 8-10% and 12-14% leveraged returns.
In April 2021, funds managed by Apollo acquired The Michaels Companies, parent of Michaels.
In May 2021, Apollo's Gamenet acquired the Italian gaming businesses of International Game Technology for €950 million.
In July 2021, funds managed by Apollo acquired EmployBridge, a large industrial-staffing company that has been cited for dozens of safety violations and wage infractions.
On August 3, 2021, Apollo announced the acquisition of the incumbent local exchange carrier operations in 20 states from Lumen Technologies for $7.5 billion, including $1.4 billion of assumed debt.
In August 2021, Apollo launched a $500 million fund to invest in Special-purpose acquisition company, SPACs.
In September 2021, investment funds managed by Apollo acquired 90% of Yahoo!.
In January 2022, Apollo acquired Athene, a retirement services business.
In May 2022, Apollo acquired the US asset management business of Griffin Capital.
In July 2022, investment funds managed by Apollo acquired Tenneco for $7.1 billion.
In 2022, investment funds managed by Apollo acquired Chicago-based and family-owned specialty grocer Tony's Fresh Market and California-based Hispanic grocery chain Cardenas (supermarket), Cardenas from Kohlberg Kravis Roberts, both for an undisclosed amount.
In 2022, investment funds managed by Apollo acquired Miller Homes from Bridgepoint Group.
Private-equity funds
Since its inception in 1990, Apollo has raised 9 private equity funds, as follows:
References
External links
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Cox Media Group
Gamut. Smart Media from Cox.
McGraw-Hill Education
Qdoba Mexican Eats
ADT Inc.
{{authority control
Apollo Global Management,
Financial services companies established in 1990
Companies listed on the New York Stock Exchange
Private equity firms of the United States
Publicly traded companies based in New York City
Investment management companies of the United States
American companies established in 1990
Drexel Burnham Lambert
Mezzanine capital investment firms
2011 initial public offerings
1990 establishments in New York City