Apollo Fund IX eyes as much as $23.5bn

The vehicle would be the largest ever for the $189bn private equity firm, which is expected to make a GP commitment of at least 3.5% of total commitments.

Apollo Global Management is looking to raise as much as $23.5 billion for its latest flagship fund, Apollo Investment Fund IX, according to the firm’s most recent filings with the Securities and Exchange Commission.

The filings, which were listed on the SEC website on 26 May for the main vehicle and related vehicle Apollo Overseas Partners IX, show a total offering amount of $23.5 billion, although it is not clear whether that figure represents the target or the hard-cap for Fund IX.

A spokesman for Apollo declined to comment.

New York-based Apollo began marketing Fund IX in February, according to PEI data, and a document from the Oregon Investment Council from March showed the firm was seeking at least $20 billion in commitments. Oregon committed $500 million to this fund.

A document from the Connecticut Office of the Treasurer obtained by Private Equity International in April showed that Fund IX has no set target or hard-cap, which the limited partner said poses a concern, and the firm has only “verbally indicated it will probably raise in the lower range of $20+ billion of commitments”. Connecticut committed up to $150 million to Fund IX.

Other LPs in the fund include Louisiana State Employees Retirement System, New Hampshire Retirement System, Ohio Police & Fire Pension Fund, Teachers’ Retirement System of Louisiana and State Teachers Retirement System of Ohio, according to PEI data. There was no indication of how much Apollo has raised so far in the SEC filings.

Fund IX will make investments in North America, with capacity to invest elsewhere, especially Western Europe, and will seeks three specific strategies of distressed investing, corporate carve-outs and opportunistic buyouts, the Connecticut document showed.

Apollo expects to close the fund sometime in the second quarter, as Apollo co-founder and senior managing director Josh Harris said during the firm’s first-quarter earnings call in April, as reported by PEI.

Apollo will make a general partner commitment of at least 3.5 percent of total capital commitments, the Connecticut document showed.

The document also indicated that the previous fund, 2013-vintage Apollo Investment Fund VIII, was generating a net internal rate of return of 13 percent as of 30 September.

According to the SEC filings, Apollo has hired Chilean firm Larrain Vial and Korea-based Shinhan Investment as placement agents for Fund IX.

Apollo managed $189 billion in assets as of 30 September.