Apollo Looks To Raise $5B For Commercial Real Estate Fund

Dollars

Apollo Global Management is hoping to court investors to buy $5B of equity in its nontraded real estate investment trust.

Its plan to sell common stock in Apollo Realty Income Solutions was approved by the Securities and Exchange Commission last month, clearing the way for the capital raise, according to AltsWire.

In addition to offering the new shares, the company is restructuring a portion of its stock, including the retirement of three share types and the associated reclassification of 300 million authorized but unissued shares.

The company initially filed for the offering in April and submitted amendments in the following months relating to the reclassification of shares before getting final approval June 26.

Apollo’s timeline and intentions for the capital raise aren’t clear. Company representatives didn't respond to multiple requests for comment.

Apollo named a new CEO and president of ARIS last year following the retirement of Randy Anderson, who is still a partner of real assets at Apollo. Jess Lipsey took over at the helm of ARIS on Dec. 31.

ARIS is a nontraded REIT with properties nationwide in nearly every major asset class, with concentrations in multifamily and industrial. It is a subsidiary of Apollo Global Management, which in February entered a deal to acquire Bridge Investment Group for $1.5B.

That deal is expected to close this quarter and will significantly add to Apollo’s holdings of both multifamily and industrial.

Apollo has aggressive growth targets, seeking to reach $1.5T in assets under management by 2029, which would double the $751B it controlled at the end of last year. Most of its growth has been achieved through mergers and acquisitions, including an $11B merger with life insurer Athene in 2022.

The Athene deal is representative of private equity giants’ increasing presence in the life insurance market, which is having major ripple effects on commercial real estate. The vast majority of Apollo's CRE assets are in property debt.

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