Apollo energy fund raises over $1bn

The distressed credit vehicle has reached its final close.

Apollo Global Management has reached a final close of just over $1 billion on its Apollo Energy Opportunity Fund, PDI understands. The New York-based firm is submitting a filing on Friday with the Securities and Exchange Commission outlining $1.045 billion of capital raised for the strategy. 

Apollo formed Apollo Energy Opportunity Management group, the investment manager for the fund in January, as reported by PDI. It dashed to final close to take advantage of falling oil prices and the distressed debt opportunities thrown up by the dislocation in the energy commodity. 

In February, Apollo reported a significant year-on-year fall in economic net income from $421.7 million in the fourth quarter of 2013, down to $93.8 million in the fourth quarter of last year. The drop was partially explained by a drop in the value of Apollo’s energy holdings in its private equity portfolio.

Apollo is one of a large number of credit investors raising money to take advantage of the stress caused by some of the lowest oil prices for five years. Avenue Capital launched its energy distressed fund in mid-2014 while others like Oaktree, KKR and Blackstone’s GSO Capital Partners are directing existing funds into distressed energy debt.