Apollo funds commit $400 million to solar joint venture

NEW YORK - Apollo Global Management, Inc. (NYSE: APO), a prominent financial services player with a market capitalization of $70.7 billion, and Summit Ridge Energy have announced a joint venture to enhance commercial solar energy infrastructure in Illinois. Apollo-managed funds are set to invest up to $400 million in the partnership, aimed at owning and operating a portfolio of commercial solar assets. This move follows a $175 million strategic investment by Apollo Funds in Summit Ridge Energy in 2022. According to InvestingPro data, Apollo's stock currently trades at $123.93, with analysts suggesting the stock may be undervalued based on their Fair Value assessment.

Summit Ridge Energy, lauded as one of the largest owner-operators of commercial solar assets in the United States, boasts over 2GW of solar projects in operation or development. Their footprint extends across several states, impacting over 40,000 homes and businesses. The partnership is expected to bolster domestic power generation, catering to the rising electricity demands of households and businesses.

Corinne Still, an Apollo Partner, expressed confidence in the expansion of their relationship with Summit Ridge, highlighting the venture as an opportunity to invest in projects that will contribute to the nation's power generation capacity. Summit Ridge Energy's Chief Investment Officer, Adam Kuehne, echoed the sentiment, emphasizing the venture's role in advancing a more reliable and locally driven energy system, which is anticipated to create thousands of American jobs.

Apollo's climate and energy transition-related investments over the past five years amount to approximately $58 billion, with firmwide targets set to deploy or arrange $50 billion by 2027 and over $100 billion by 2030. These targets align with Apollo's proprietary Climate and Transition Investment Framework, which classifies sustainable economic activities and outlines methodologies for investment calculations. InvestingPro analysis reveals Apollo has maintained dividend payments for 15 consecutive years, with a current dividend yield of 1.49%. For deeper insights into Apollo's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Apollo, a global alternative asset manager with $751 billion assets under management as of December 31, 2024, has a longstanding reputation for providing clients with excess returns across a broad risk-reward spectrum, ranging from investment grade credit to private equity. The company's strong financial position is reflected in its current ratio of 1.51 and EBITDA of $6.63 billion. Summit Ridge Energy, since its inception in 2017, has raised over $5 billion in project capital to finance more than 200 solar farms. InvestingPro subscribers have access to 12 additional key insights about Apollo's performance and prospects, along with real-time updates on its financial metrics.

This partnership is based on a press release statement and reflects the ongoing commitment of both Apollo and Summit Ridge Energy to contribute to a secure energy future for the U.S. while delivering economic benefits and energy savings to local communities.

In other recent news, Apollo Global Management has released preliminary financial results for the first quarter of 2025, reporting an anticipated alternative net investment income of approximately $290 million. This figure represents an estimated annualized return of 9% on alternative net investments. Meanwhile, Raymond James has initiated coverage on Apollo with a Strong Buy rating and a price target of $173, citing the company's growth potential and strategic positioning. TD Cowen has also maintained a Buy rating on Apollo, setting a price target of $214, following investor meetings and positive performance indicators despite economic uncertainties.

Apollo is reportedly exploring the sale of Cox Media Group, which could fetch around $4 billion. The firm has engaged Moelis & Co. to explore potential sale opportunities, although no transaction is guaranteed. Potential buyers include Nexstar Media Group Inc. and Gray Media Inc., though neither has commented on the matter. These developments come as the broadcast TV industry faces challenges such as declining viewership and advertising revenue, with expectations of deregulation potentially leading to further consolidation. Apollo's strategic moves and financial performance continue to be closely monitored by investors and analysts.

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