Global alternative asset manager Apollo has launched two products aimed at giving investors access secondary with many assets.
The products include Apollo S3 Private Markets Fund (ASPM US), a perpetual tender offer fund open to US accredited investors, and Apollo S3 Private Markets Lux (ASPM Lux), which will be part of the investment platform Apollo alternative in Luxembourg for investors. in EMEA, Asia and Latin America. ASPM Lux will be accessible to local investors in multiple currencies.
The funds will invest in secondary sectors across the capital stack and focus on diversification across vintages and managers.
“We believe these new offerings will provide distinct access points to private market seconds, leveraging the collective strength of the Apollo Private Markets ecosystem and the Apollo S3 team, which sourced over $160 billion in these types of transactions last year ,” he said. Steve Lessar, partner and co-head of Apollo's sponsor and secondary solutions business, in a statement. “It is our view that secondaries can offer a combination of attractive attributes not commonly found in other private market strategies, and we are pleased to make that available to investors.”
Stephanie Drescher, partner and chief client and product development officer with the firm, said in a statement that ASPM's launch “underscores Apollo's commitment to providing access to institutional-quality alternative offerings tailored to individuals and wealth investors.”
During the investor's last day, Apollo executives reveal their five-year goals to raise $30 billion a year from global wealth investorsreaching $150 billion in AUM for the firm's private wealth-centric products and doubling the size of their in-house wealth team. The company claims it already sells about $1 billion a month in its existing semi-liquid products aimed at the wealth channel, including products that focus on private credit, private equity, real assets and infrastructure. Since 2021, when Apollo began targeting the wealth channel, it has grown the team to more than 100 staff members and raised $27 billion cumulatively.
Apollo CEO Mark Rowan is mentioned planning several fund launches targeting the retail channel before the end of the year during an August company earnings call.
“We, as an industry, will not build the infrastructure necessary to reach the vast majority of investors who are already well served by traditional asset managers,” he said. “I believe our role is … to be a parts provider for those parts of our product that we can build and that we like to have access to and be a joint venture partner. And I can't tell you exactly how it's going to align, but it's one of the most interesting parts of our business right now.”
Apollo is just one of a growing group of alternative asset managers launching new semi-liquid funds targeting the wealth channel. Last week, private markets investment management firm Hamilton Lane announced it was launching two evergreen funds targeting private markets infrastructure investments on behalf of accredited investors.