TRSL commits $50m to Apollo’s Euro strategy – exclusive

The $17bn US pension fund has followed up a previous commitment of $50m to Apollo’s strategy that targets distressed debt investments across Europe.

US pension fund Teachers’ Retirement System of Louisiana (TRSL) has committed to Apollo’s third European-focused distressed vehicle after it agreed to allocate $50 million to the investment strategy.

The $17 billion pension fund’s investment committee had met at the beginning of April to discuss the potential commitment, according to documents on the organisation’s website. Maurice Coleman, deputy chief investment officer at TRSL, confirmed to the PDI that the board of trustees agreed to commit $50 million to the strategy.

TRSL had previously allocated $50 million to the Apollo European Principal Finance Fund III last year. The strategy targets distressed debt investments in the European market and recently surpassed $3 billion in commitments, according to the firm’s recent first-quarter earnings call.

TRSL has 6 percent of its investment allocation in private debt – matching the firm’s target outlined in a monthly investment report published in February. The pension fund has invested in strategies managed by Oak Hill Advisors, HPS and Lone Star.

Apollo is targeting $3.5 billion at final close. PDI data reports that Pennsylvania Public School Employees’ Retirement System has committed $200 million to the fund and State of Wisconsin Investment Board invested $50 million.

Apollo declined to comment on the latest commitment.

Apollo has established a partnership with Athene Holding on a European investment strategy to “acquire or reinsure blocks of insurance business in the life insurance market where we believe that there is a large need for capital,” said Josh Harris, co-founder of Apollo, in the firm’s recent earnings call.

So far, the vehicle, titled AGER, has more than €2 billion in committed capital. Both Apollo and Athene are minority investors in the strategy.