Apollo sets $2.5bn target for Fund III

The New York-headquartered firm is aiming to raise $1 billion more than it did for its last Credit Opportunity Fund.

Distressed debt investor Apollo Global Management has set a $2.5 billion target for its Apollo Credit Opportunity Fund III (COF III).

The fund has so far raised $1.43 billion from 84 investors, according to a regulatory filing dated 23 June. Fundraising for the fund was first flagged in a regulatory filing in December 2012. 

Apollo Credit Opportunity Fund III invests in opportunistic credit strategies such as private lending and mezzanine debt. Investors in the fund include Teacher Retirement System of Texas and Michigan Department of Treasury, according to Private Debt Investor’s research and analytics division. 

Apollo is aiming to raise almost $1 billion more than it did for 2008 vintage Apollo Credit Opportunity Fund II, which closed at $1.6 billion. Apollo Credit Opportunities Fund I closed at $1.5 billion.

Last month, the state-owned Alaska Permanent Fund Corporation authorised a $750 million separate account for private credit investments to be managed by Apollo. 

Alaska is expected to pledge $350 million commitments across three of Apollo’s funds, according to the Wall Street Journal: Apollo Credit Opportunity Fund III, Apollo Credit Strategies, a hedge fund, and Apollo Structured Credit Recovery Fund III, which targets structured credit.

A spokesperson for Apollo declined to comment.