Aldar to Receive $500M Hybrid Capital Solution from Apollo
Apollo (NYSE: APO) has announced a major investment deal where Apollo-managed affiliates, funds, and clients will invest USD $500 million in subordinated notes issued by Aldar Properties PJSC (“Aldar”). This transaction is one of the largest-ever corporate hybrid private placements in the region and brings Apollo’s total investment in Aldar to approximately USD $1.9 billion across four separate transactions since 2022.
Jamshid Ehsani, Partner at Apollo, expressed excitement about deepening the partnership with Aldar, saying, “We are pleased to broaden our partnership and provide another scaled capital solution to Aldar by investing in a leading real estate franchise that we believe offers an attractive investment opportunity for our clients. Apollo’s fourth investment in Aldar underscores our strong partnership with the company as well as our commitment to serving as a leading capital provider to the broader Abu Dhabi ecosystem.”
This hybrid private placement is the latest step in Apollo’s ongoing commitment to investing in Abu Dhabi and the UAE, following a significant transaction in August 2022. During that deal, Apollo-managed funds and clients invested USD $1.4 billion in Aldar, which included a USD $400 million equity investment in Aldar Investment Properties. Additionally, in November 2024, Apollo extended its partnership with Mubadala Investment Company through a multi-year agreement, focusing on global origination opportunities, further solidifying its presence in the region.
Since 2020, Apollo has been a major player in originating bespoke capital solutions through its High-Grade Capital Solutions strategy. This initiative has seen Apollo help leading global companies such as Intel, Sony, Air France, and AB InBev, originating nearly $100 billion in capital solutions tailored to meet the unique needs of these businesses.
The new investment in Aldar represents a continued alignment of Apollo’s resources and strategy with the growing real estate and infrastructure sectors in the UAE and broader Middle East region. Aldar, known for its leadership in real estate development and management in Abu Dhabi, benefits from Apollo’s deep expertise in providing innovative capital solutions. For investors, the subordinated notes offer a unique opportunity to engage with a robust, growing real estate market with the backing of one of the region’s most trusted investment firms.
In the broader context of Apollo’s investment strategy, this deal underscores the company’s global approach to asset management. With more than three decades of experience, Apollo leverages its fully integrated platform to deliver superior returns across a diverse range of investment opportunities. The firm has a broad focus, spanning from investment-grade credit to private equity, and continues to expand its global footprint through strategic investments like this one with Aldar.
Apollo’s investment model is characterized by its patient, creative, and knowledgeable approach to managing capital. This model has helped clients generate strong financial returns, provided companies with the capital needed to fuel growth, and contributed to positive outcomes for communities around the world. With a commitment to innovative solutions, Apollo has built a reputation as a leading alternative asset manager.
As of September 30, 2024, Apollo had approximately $733 billion in assets under management (AUM), highlighting its strong position in the global investment landscape. The company’s ability to originate bespoke capital solutions that are tailored to the specific needs of businesses and investors continues to set it apart from other firms in the industry.
The agreement with Aldar is an important milestone in Apollo’s ongoing investment strategy, particularly in the UAE and the Middle East. By increasing its capital commitments and expanding its presence in the region, Apollo is positioning itself as a key partner in the continued development of the UAE’s real estate and infrastructure sectors. Through strategic investments, the firm is helping to shape the future of the region while simultaneously offering strong opportunities for its clients.
In conclusion, Apollo’s latest investment in Aldar, totaling USD $500 million, marks another significant step in the company’s ongoing growth and its deepening ties with the UAE market. With a proven track record of successful investments and a clear focus on delivering tailored capital solutions, Apollo continues to be a trusted partner for businesses in the region. As the company moves forward, it is poised to play a leading role in the development of key industries and continue providing clients with attractive, high-growth opportunities.
