Apollo Management has reassured investors that the highly publicised bankruptcy of portfolio company Linens ‘n Things will have a relatively minimal effect on investor returns.
The Leon Black-led private equity group has estimated that if the value of Apollo’s investment in the housewares giant were marked down to zero, the gross internal rate of return for investors in Apollo Investment Fund V would drop by only 1 percent, to 70 percent overall, according to an investor letter obtained by PEO.
