Apollo and Securitize partner to tokenize credit fund

NEW YORK and MIAMI - Securitize, Inc., a prominent figure in the digitization of real-world assets, has partnered with global alternative asset manager Apollo (NYSE: APO), a $96.8 billion market cap leader in the Capital Markets industry, to provide tokenized investment opportunities, starting with the Apollo Diversified Credit Securitize Fund (ACRED). According to InvestingPro data, Apollo has demonstrated remarkable performance with a 71% return over the past year, positioning it as a significant player in the alternative investment space. This initiative, announced today, represents the first instance where investors can access the Apollo Diversified Credit Fund through a blockchain-based product.

ACRED is now available on multiple blockchain networks, including Aptos, Avalanche, Ethereum, Ink, Polygon, and Solana. This launch is supported by Etherealize in the Ethereum ecosystem and has attracted investments from major players like Coinbase (NASDAQ:COIN) Asset Management and Kraken. Securitize Markets, the broker-dealer subsidiary of Securitize, is the exclusive platform for qualified investors to participate in ACRED. Securitize also fulfills the roles of ACRED’s digital transfer agent and fund administrator.

The collaboration aims to make private markets more accessible and efficient by offering an on-chain version of Apollo Diversified Credit Fund, which provides diversified exposure to various corporate and asset-backed credit strategies. With Apollo’s strong financial position, evidenced by a healthy current ratio of 1.93 and annual revenue of $31.67 billion, the company appears well-positioned to execute this innovative initiative. InvestingPro analysis reveals 12 additional key insights about Apollo’s market position and growth potential, available to subscribers. Apollo Partner Earl Hunt highlighted the significance of this milestone in democratizing private market access. Christine Moy, another Apollo Partner, emphasized the potential for broader private market access and efficiency enhancements through such digital asset innovations.

Securitize, leveraging its partnership with Wormhole as its official interoperability partner, intends to facilitate the seamless transfer of tokens across different blockchain ecosystems, thereby improving liquidity and accessibility for investors.

Apollo Diversified Credit Fund is described as a non-traded, closed-end interval fund focused on current income and capital appreciation with low volatility and minimal correlation to broader markets.

Carlos Domingo, Co-founder and CEO of Securitize, recognized the emerging demand for tokenized assets in fixed income and private credit, citing Apollo’s expertise as pivotal for tokenizing this asset category and expanding investor opportunities.

This partnership is based on a press release statement and aims to blend traditional investment strategies with modern blockchain technology to enhance investor access and operational efficiency in the private credit sector. Based on InvestingPro’s Fair Value analysis, Apollo appears undervalued at its current price of $171.1, suggesting potential upside for investors interested in this innovative direction in private markets. For comprehensive insights into Apollo’s valuation and future prospects, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Athene Holding (NYSE:ATH) Ltd., operated by Apollo Global Management (NYSE:APO), announced plans to discuss their Q4 and full-year results for 2024 in a conference call scheduled for February 2025. This follows a recent court ruling favoring Apollo’s Leon Black in a defamation claim, dismissing allegations brought forth by Guzel Ganieva. Concurrently, Standard Chartered (OTC:SCBFF) PLC has strategically partnered with Apollo, acquiring a minority stake in Apollo’s infrastructure debt platform, Apterra, to bolster global financing for infrastructure and renewable energy projects.

In a significant move, Apollo is set to acquire Argo Infrastructure Partners, aiming to expand its infrastructure portfolio by approximately $6 billion. This acquisition is expected to modestly increase Apollo’s fee-related earnings by 2026. Additionally, Databricks Inc. secured over $5 billion in its largest debt financing round, with Apollo Global Management Inc. being one of the lenders.

These recent developments indicate a period of strategic growth and partnerships for Apollo Global Management, as well as legal victories. It is essential for investors to consider these facts when evaluating the company’s performance and future prospects.

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