Apollo Hybrid Value; any details?

cheesus4me's picture
Rank: Chimp | 11

Apollo recently closed what they're calling a "hybrid value" platform, to invest "in senior and subordinated debt along with structured equity investments and buyouts. It typically makes non-control investments in financially stressed or distressed businesses and structured equity, either control or non-control positions that would fund myriad transaction types, including growth capital and deleveraging deals. It typically invests in companies with enterprise values between $750 million and $2.5 billion. It prefers to invest between $75 million and $250 million." (CapIQ)

Anyone have more color on the mandate? Is this just PE/Credit but with even more sophisticated financial engineering in the background? Seems interesting (a little reminiscent of BX Tac Opps) but would love more details. For the control deals, odd to see APO reaching into the LMM space; looks like HV did two transactions this year 2bn ish a piece.


Comments (6)

Sep 12, 2019

How is 2bn EV LMM?

  • Intern in IB-M&A
Sep 13, 2019

This. Definitely not LMM although still curious to know why these buyouts, which look pretty unremarkable, were executed out of the hybrid value fund.

Sep 13, 2019

Not to beat a dead horse, but you are way off mark defining that holding size as LMM...

Feb 17, 2020

would love to hear some additional color on this group, thanks.

  • Associate 2 in Other
Feb 18, 2020

it's run by partner who is in charge of fig and on the board of athene
i'd imagine it's a bit of a mixed bag of downside protected growth equity investments, value oriented special sits, occasional buyouts (but in non-competitive processes). generally heavily structured, heavily negotiated, more proprietary opps

    • 1
Mar 23, 2020