Apollo to invest $6.5 billion in world's largest offshore wind farm

LONDON - Apollo (NYSE:APO) has agreed to invest $6.5 billion to acquire a 50% stake in Ørsted's Hornsea 3 offshore wind project in the North Sea, according to a company press release statement. The investment comes as Apollo, with a current market capitalization of $70.76 billion, continues to expand its portfolio. InvestingPro analysis suggests Apollo is currently trading below its Fair Value, presenting a potential opportunity for investors interested in this prominent financial services player.

The investment includes the acquisition price for the 50% interest in the joint venture and a commitment to fund half of the project's remaining construction costs. Apollo is expected to invest approximately $3.25 billion upon closing, with the remaining $3.25 billion to be funded as the project reaches certain construction and development milestones.

Hornsea 3, with a planned capacity of 2.9 gigawatts, is being developed as Ørsted's third gigawatt-scale project in the North Sea's Hornsea zone. Once completed, the wind farm will generate renewable electricity for more than 3 million UK households.

Under the agreement, Ørsted will continue to construct the wind farm under a full-scope EPC contract and will provide long-term operations and maintenance services as well as route-to-market for power generation.

"Ørsted is a global leader in offshore wind power and Hornsea 3 is its most significant project yet," said Adam Petrie, Apollo Infrastructure Partner.

The transaction includes senior financing led by Apollo-managed entities, with bank facilities underwritten by BNP Paribas, ING Bank, Lloyds and RBC Capital Markets. Co-investors include La Caisse (formerly CDPQ) and PSP Investments.

The deal is subject to regulatory approvals and is expected to close before year-end 2025.

This investment follows Apollo's recent capital solutions for European energy infrastructure, including a €3.2 billion investment for German energy grid expansion and a £4.5 billion financing commitment to EDF for its Hinkley Point C nuclear power plant.

As of June 30, 2025, Apollo had approximately $840 billion of assets under management. The company has maintained dividend payments for 15 consecutive years, currently offering a 1.64% yield, and is set to report its next earnings on November 4, 2025. Apollo trades at a P/E ratio of 23.01 and has received a "GOOD" overall financial health rating from InvestingPro, which offers a comprehensive Pro Research Report on Apollo among 1,400+ US equities, providing investors with actionable intelligence through intuitive visuals and expert analysis.

In other recent news, Apollo Global Management has completed the acquisition of a majority stake in Stream Data Centers, a developer of hyperscale data center campuses across the United States. This acquisition was made through Apollo-managed funds, with Principal Asset Management acquiring a minority interest. Additionally, Apollo has partnered with venture capital firm 8VC to fund industrial tech companies, focusing on sectors such as advanced manufacturing and aerospace. This strategic partnership aims to deploy billions in flexible capital solutions, combining Apollo's financing capabilities with 8VC's expertise.

Furthermore, Apollo has participated in a significant funding round for the crypto exchange Kraken, which raised $500 million and valued the company at $15 billion. Other notable investors in this round include Oppenheimer and Jane Street. In leadership news, Apollo has appointed Bert Crouch as Partner and Head of Real Estate Equity, where he will oversee the firm's real estate equity business. Crouch brings over 20 years of experience in real estate investment, previously leading North America at Invesco Real Estate.

Lastly, Apollo's new European private equity lead, Alex van Hoek, has expressed optimism about buyout opportunities in Europe, suggesting potential for more activity in the region compared to the United States. This approach marks a shift in Apollo's traditional focus and highlights their strategic interest in expanding European operations.

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