Apollo marketing European debt fund

Fundraising has begun for the third in a series of funds focused on European bad debt from Apollo.  

Apollo Global Management has started fundraising for its third European debt fund, Bloomberg reported Wednesday (25 May). Citing people with knowledge of the plans, Bloomberg reported that the fund, European Principal Finance III has a target of $3.5 billion that Apollo expects to reach by the end of 2016.

A representative for Apollo declined to comment.

Co-founder Josh Harris mentioned the firm's plans to begin marketing the new fund during Apollo's first quarter conference call earlier this month. Bloomberg reported that European Principal Finance III will seek opportunities to buy debt from stressed asset managers and large institutional investors as well as from banks.

Apollo's previous European debt fund closed in 2012 and raised $3.5 billion for portfolios of assets and businesses from financial institutions in Europe. LPs in the second fund included the Louisiana State Employee Retirement System, the State of Wisconsin Investment Board and the University of California Regents Endowment Fund, according to PDI Research & Analytics.

The original fund in the series raised $1.5 billion and started deployment in 2007 . In April, Apollo announced it is teaming up with the World Bank's International Finance Corporation (IFC) to establish a $1 billion distressed assets vehicle that will buy pools of non-preforming loans in several emerging markets.

Apollo has $173 billion of assets under management and a strategy that includes private equity, credit and real estate platforms. Founded in 1990, Apollo has more than 350 investment professionals and maintains offices throughout North America, Western Europe and Asia.