Apollo funds commit $220 million to solar JV

NEW YORK - Apollo Global Management, Inc. (NYSE: APO), a $70.57 billion market cap investment giant currently trading at $123.71, and Bullrock Energy Ventures have announced a joint venture that will see Apollo-managed funds invest up to $220 million in a portfolio of community solar assets across New York and New England. According to InvestingPro analysis, Apollo shows strong financial health with liquid assets exceeding short-term obligations. The investment includes $100 million in equity to support the development of Bullrock’s nearly 500 megawatt (MW) pipeline of renewable energy projects.

Bullrock, a renewable energy company based in Vermont, operates throughout the Northeast and boasts a vertically integrated model encompassing deal sourcing, underwriting, development, construction, financing, and asset management. The company, along with partner NxtGenREA, has developed close to 500 MW of solar projects in New England, New York, and the Midwest over the past decade.

The partnership is aimed at bolstering community solar initiatives, which provide local residents and businesses with access to affordable clean energy. "We are excited to partner with Gregg and the Bullrock team and invest in this scaled portfolio of solar assets that we believe will offer significant benefits to their surrounding communities," said Apollo Partner Corinne Still.

Gregg Beldock, Chairman and Founder of Bullrock, along with Managing Partner Amory Beldock, commented on the collaboration’s potential to enhance a leading renewables platform and contribute to American energy security.

Apollo-managed funds have a robust track record in climate and energy transition-related investments, having committed, deployed, or arranged approximately $58 billion over the past five years. The company’s financial strength is evident in its healthy current ratio of 1.51 and its 15-year track record of consistent dividend payments. Want deeper insights? InvestingPro offers 12 additional investment tips for Apollo Global Management. The company’s Climate and Transition Investment Framework outlines targets to deploy or commit $50 billion by 2027 and over $100 billion by 2030 towards sustainable economic activities.

Legal counsel for the Apollo Funds was provided by Orrick, Herrington & Sutcliffe LLP, while Brown Rudnick LLP served as legal counsel to Bullrock. The tax equity for the portfolio was arranged by NxtGenREA’s Mike Mills.

This strategic move aligns with Apollo’s broader commitment to investing in companies and projects that address the growing demand for diverse sources of power, as well as supporting the energy transition. As of December 31, 2024, Apollo managed approximately $751 billion of assets. While the stock has experienced recent volatility with a YTD return of -24.88%, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, presenting a potential opportunity for investors. Discover comprehensive insights and detailed valuation metrics in Apollo’s Pro Research Report, available exclusively to InvestingPro subscribers.

The information in this article is based on a press release statement.

In other recent news, Apollo Global Management has announced a partnership with MGA Moonrock to establish an insurance facility for drones and aviation innovation, providing liability coverage up to $100 million and property damage coverage up to $22.5 million. Additionally, Apollo has committed $400 million to a joint venture with Summit Ridge Energy to enhance commercial solar energy infrastructure in Illinois. This move builds on a previous $175 million investment in Summit Ridge Energy in 2022. In leadership changes, Gary Cohn has been appointed as Apollo’s Lead Independent Director, while CEO Marc Rowan will also assume the role of Chair of the Board in 2025. Meanwhile, Raymond James has initiated coverage on Apollo’s stock with a Strong Buy rating and a price target of $173, citing the firm’s growth potential and strategic acquisitions as key factors. Apollo’s chief economist has also warned that a potential US recession could worsen the country’s budget deficit, despite lower interest rates. These developments come as Apollo continues to manage $751 billion in assets as of December 31, 2024.

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