Redding Ridge to acquire Irradiant, boosting AUM to $38 billion

NEW YORK - Redding Ridge Asset Management (RRAM), an independently managed affiliate of Apollo (NYSE: APO), a prominent player in the Financial Services industry with an $85.35 billion market capitalization, is set to significantly expand its assets under management (AUM) with the acquisition of Irradiant Partners, an alternative investment manager.According to InvestingPro data, Apollo has demonstrated strong financial stability with over $25 billion in annual revenue and has maintained dividend payments for 15 consecutive years, showcasing its commitment to shareholder returns. The deal will see RRAM’s AUM increase by approximately $10.7 billion in collateralized loan obligations (CLOs), positioning the firm as a top five CLO manager with a total AUM nearing $38 billion. Additionally, Apollo will integrate $2.2 billion in private credit and renewables AUM from Irradiant. This expansion aligns with Apollo’s robust financial position, reflected in its impressive current ratio of 7.16x, indicating strong liquidity to support strategic growth initiatives.

Irradiant, established in 2021, was co-founded by Michael Levitt, John Eanes, and Jon Levinson. Upon completion of the acquisition and regulatory approvals, John Eanes will assume the role of Chief Investment Officer for RRAM US, while Levitt and Levinson will join Apollo’s team. The acquisition is expected to reach a first close in Q2 2025 for a majority of the business, including liquid and private credit sectors.

Bret Leas, a board member at RRAM and Apollo partner, highlighted the importance of scale and operating leverage in the current market, stating that the acquisition will create one of the best capitalized global CLO managers. John Eanes expressed his pride in building Irradiant into a leading alternative credit business and looked forward to leveraging additional resources and scale as part of Redding.

RRAM, founded in 2016, has quickly grown to become a prominent manager for CLO transactions and related warehouse facilities in the US and Europe. The firm focuses on CLO management and partnership investments, maintaining a credit-first, disciplined investment strategy. The acquisition will be funded with cash from RRAM’s balance sheet, and the financial terms have not been disclosed.

The majority of Irradiant’s employees are expected to be retained, ensuring continuity of management for existing funds and expanding RRAM’s US portfolio management team. The legal and financial advisors for the transaction are Sidley Austin and Greensledge Capital Markets for RRAM and Apollo, and Weil, Gotshal & Manges and Piper Sandler for Irradiant Partners.

This strategic move is based on a press release statement and is subject to regulatory approval. It marks a significant milestone for RRAM as it continues to grow and strengthen its position in the structured credit market. Apollo’s stock has shown remarkable momentum with a 44.29% return over the past six months, and InvestingPro analysis suggests the stock may still have room to grow based on its Fair Value assessment. For detailed insights into Apollo’s valuation and growth prospects, including 12 additional ProTips and comprehensive financial metrics, investors can access the full Pro Research Report available on InvestingPro.

In other recent news, Oldenburgische Landesbank AG is preparing for an initial public offering, aiming for a valuation of up to $2.1 billion. This move marks the bank’s return to public listing plans after a two-year hiatus, during which market conditions were affected by the collapse of Silicon Valley Bank and UBS’s rescue of Credit Suisse. Meanwhile, Apollo Global Management (NYSE:APO) has launched a $5 billion multi-strategy credit fund, designed to attract insurance-industry funds by combining investment-grade credits and offering a 30-year maturity period.

In analyst updates, TD Cowen reiterated its Buy rating on Apollo Global Management, highlighting a strong revenue outlook for 2025 and a price target of $214. Keefe, Bruyette & Woods adjusted their price target for Apollo to $194, maintaining an Outperform rating despite minor revisions in financial projections. JMP Securities maintained a Market Perform rating on Apollo, noting the company’s consistent execution but expressing caution due to potential downside risks in earnings estimates. These developments reflect a variety of strategic and financial activities across both companies, offering insights into their current market positions.

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