The latest quarterly reporting from private equity’s listed giants sheds light on how the asset class is recovering from pandemic-related turmoil last quarter.
We examine Apollo Global Management’s private equity funds in another instalment of Private Equity International’s Performance Watch, which compares the firm’s Q2 2020 figures with those from the prior two quarters.
Apollo’s private equity portfolio appreciated 11.7 percent in Q2, compared with a 21.6 percent loss in the first quarter. The improvement was primarily driven by its public portfolio company holdings.
“The portfolio remains in good shape overall, despite the challenging economic environment,” chief financial officer Martin Kelly said on the firm’s earnings call in July.
“Fund VIII is now out of holdback having appreciated by 17 percent during the quarter. We invested Fund VIII with an emphasis on durable business models and strong free cashflow and with the focus on purchase price.”
The $18.4 billion 2013-vintage Fund VIII acquired portfolio companies at a 6.5x enterprise value-to-EBITDA multiple on average, excluding cost savings, with only 3.6 times leverage on average, Kelly noted.
The interactive charts below depict three of the firm’s private equity fund families based on its two previous quarterly earnings reports. The bubbles are sized proportionately to the size of the fund; toggle between the tabs to see how their performance differed between quarters.