Apollo raises $8.4bn for Fund VIII

Since the end of June, Apollo has raised about $2bn of capital for Fund VIII, and has recently taken more than five companies public.

Apollo Investment Fund VIII has raised $8.4 billion as of Thursday, according to the firm’s second quarter earnings statement. The fund, which launched earlier this year, is targeting $12 billion, according to Private Equity International’s Research and Analytics division.
 
The fund has received commitments from the Teachers Retirement System of Louisiana and The Kansas Public Employees Retirement System, PEI data revealed. But over the past few years, Apollo also has seen an increase in commitments from international LPs, the firm said during its earnings conference call.
 
Apollo also commented on the terms of its funds, which are “more or less” where they have historically been for the firm, except the percentage of the transaction fee the firm shares with LPs to offset the management fee, which has increased from 68 percent to 100 percent for Fund VIII, Marc Spilker, Apollo's president said during an earnings conference call.
 
During the period, Apollo partially exited Evertec, when it took the payment processor public in April. Dutch aluminium product maker Constellium and chemical maker Taminko went public later on in the quarter, the firm said during the call.
  
So far during the third quarter, Apollo has taken Athlon Energy and specialty grocery chain, Sprouts Farmers Market, public.

Other companies like Lyondell, the largest maker of  polypropylene plastic and Realogy, the owner of Coldwell banker and Century 21, were sold through secondary deals, a source familiar with the firm told PEI.

ENI, an earnings measurement that includes unrealised investments, from Apollo’s private equity group was $176.8 million for the second quarter, compared to $52.2 million for 2012’s second quarter, according to the statement. Apollo said this increase was driven by total carried interest income which soared $222.8 million year-over-year. Total ENI was $198 million as of 30 June.

The net IRR in the private equity group for the period appreciated 5 percent, the statement disclosed. “This favourable performance was driven primarily by Fund VII, which appreciated by approximately 9 percent and generated more than $220 million of carried interest income during the second quarter,” said Martin Kelly, chief financial officer, said during the call.

Uncalled private equity commitments were $13 billion as of 30 June, the statement disclosed. About $6.6 billion of the capital is from Fund VIII's first close, Kelly disclosed during the call.