Apollo nears $15bn close

An SEC filing reveals the mega-firm’s IRRs to date as well as fundraising status for its seventh buyout fund.

Apollo Management has raised $12.5 billion (€8 billion) for its seventh buyout fund, targeting $15 billion, while an unspecified number of its capital markets funds “are in various stages of fundraising”, according to a Securities and Exchange Commission filing.

The filing, pursuant to its plans to raise $418 million in floating a portion of its management company in August,  also revealed that the firm's private equity funds have generated a 40 percent gross internal rate of return and a 29 percent net IRR from inception through 31 December 2007.

As of 31 December, Apollo had $40.3 billion in assets under management, consisting of $30.2 billion in the private equity business and $10.1 billion in the capital markets business.

Apollo also said it will raise larger private equity funds in the future, in effort to maintain the 53 percent compound annual growth rate in assets under management the firm enjoyed between 31 December 2004 and 31 December 2007.

The mega-firm closed its sixth private equity fund on $10.1 billion in 2006. Filings indicate that co-investment from Apollo’s Euronext-listed vehicle bring that fund’s total to $12.5 billion.

Within its capital markets business, Apollo has $5.1 billion in mezzanine funds, $3.3 billion in global distressed and hedge funds and $1.7 in senior credit opportunities funds.