Apollo invests $500 million in Aldar Properties hybrid notes

NEW YORK - Apollo (NYSE: APO), a global alternative asset manager with $97.18 billion in market capitalization, has announced an investment of $500 million in Subordinated Notes issued by Aldar Properties PJSC (Aldar), marking one of the largest corporate hybrid private placements in Abu Dhabi. This investment, announced today, increases Apollo’s total investment in Aldar to approximately $1.9 billion since 2022. According to InvestingPro analysis, Apollo is currently trading below its Fair Value, suggesting potential upside opportunity.

Apollo Partner Jamshid Ehsani expressed satisfaction with the expansion of their partnership with Aldar, highlighting the transaction as a testament to Apollo’s commitment to providing capital solutions in Abu Dhabi and the broader United Arab Emirates (UAE). Ehsani noted the investment in Aldar as an attractive opportunity for Apollo’s clients. The firm’s strong market position is reflected in its impressive 73.63% return over the past year and consistent dividend payments for 14 consecutive years.

The investment follows a series of engagements between Apollo and Aldar, including a $1.4 billion strategic capital investment in August 2022, which comprised $400 million in equity for Aldar Investment Properties. Additionally, Apollo extended its multi-billion-dollar partnership with Mubadala Investment Company in November 2024, focusing on global origination opportunities. For deeper insights into Apollo’s investment strategy and financial health, InvestingPro subscribers can access comprehensive analysis and 14 additional ProTips.

Apollo’s High-Grade Capital Solutions strategy has been instrumental in originating nearly $100 billion of bespoke capital solutions since 2020 for companies such as Intel (NASDAQ:INTC), Sony (NYSE:SONY), Air France, and AB InBev. The firm’s asset management business aims to deliver excess returns across the risk-reward spectrum, from investment grade credit to private equity. With $31.67 billion in revenue and $6.276 billion in EBITDA, Apollo demonstrates significant financial strength in executing its investment strategy.

With approximately $733 billion of assets under management as of September 30, 2024, Apollo continues to grow and serve the financial return needs of its clients while providing innovative capital solutions for growth to the businesses it invests in. This latest transaction with Aldar Properties underscores Apollo’s role as a leading capital provider in the region.

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

In other recent news, Apollo Global Management (NYSE:APO) has been actively forging strategic partnerships and expanding its portfolio. Apollo has teamed up with Securitize, Inc. to provide tokenized investment opportunities, beginning with the Apollo Diversified Credit Securitize Fund (ACRED). The fund is now available on multiple blockchain networks, attracting investments from major players like Coinbase (NASDAQ:COIN) Asset Management and Kraken. This initiative is seen as a significant step in democratizing private market access.

Apollo is also set to acquire Argo Infrastructure Partners, which will expand its infrastructure portfolio by approximately $6 billion. This move is expected to modestly increase Apollo’s fee-related earnings by 2026. In addition, Apollo was one of the lenders in Databricks Inc.’s largest debt financing round, which secured over $5 billion for the software maker.

Apollo’s parent company, Athene Holding (NYSE:ATH) Ltd., has announced plans to discuss their Q4 and full-year results for 2024 in a conference call. In legal news, a recent court ruling favored Apollo’s Leon Black, dismissing a defamation claim brought forth by Guzel Ganieva. Lastly, 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. These are recent developments that highlight Apollo’s strategic growth, partnerships, and legal victories.

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