Apollo launches $1.25bn Asia credit strategy

The US-based firm has teamed up with an Australian pension fund to expand its credit activities in the Asia-Pacific region.

Apollo Global Management is launching its first dedicated Asia-Pacific strategy, with $1.25 billion of assets.

The US-headquartered investor has partnered with Hostplus, one of the largest superannuation funds in Australia, to develop the Asia-Pacific strategy.

It secured a $500 million anchor commitment from Hostplus, with the remainder made up from Apollo’s internal affiliated insurance balance sheets. Hostplus has worked with Apollo for 13 years and said the launch of the strategy is part of its attempts to diversify its investment portfolio in the long term.

Apollo will focus its investments in Australia, India, Singapore, South Korea and Hong Kong, with select deployment in other parts of the region.

While this is the first strategy the firm has dedicated to the region, Apollo has more than $10 billion of assets under management invested in the region and a team of 60 investment professionals. Last year, it appointed Matt Michelini as head of Asia-Pacific in Singapore, as well as an Australia-based credit team led by Anthony Hermann.

Jim Zelter, co-president of Apollo, said: “This strategy is a natural extension of our global credit capabilities and reflects growing demand in the region for flexible, expedient capital solutions from non-bank lenders.”

Apollo said it will also look to further grow its partnerships with Asian and Australian investors, from which it has raised more than $22 billion since 2017.