New York-listed global alternative asset manager Apollo has teamed up with Hostplus, one of the five largest superannuation funds in Australia, to establish Asia Pacific Credit Strategy, according to an announcement.
The new strategy launches with $1.25 billion in assets, following an inaugural raise that includes a $500 million anchor commitment from Hostplus alongside Apollo’s internal and affiliated insurance balance sheets.
Asia Pacific Credit Strategy will focus on Australia, India, Singapore, South Korea and Hong Kong, with select deployment across other parts of the region. “This strategy is a natural extension of our global credit capabilities and reflects growing demand in the region for flexible, expedient capital solutions from non-bank lenders,” said Apollo co-president Jim Zelter.
The launch of the fund follows Apollo’s increasing investment activity in the region. Recently, Apollo provided $750 million financing for Mumbai International Airport through its managed credit funds.
It also helped to structure and made a cornerstone investment in a A$150-million sustainability-linked note issuance for Ampol in Australia.
Apollo currently has approximately $513 billion of assets under management, with more than $10 billion invested in Asia Pacific. Last year, it named partner Matt Michelini as head of Asia Pacific based in Singapore.
Founded in 1990, Apollo has offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai, and Tokyo.
In 2020, the firm filed to raise its second Asia opportunity real estate fund, Apollo Asia Real Estate Fund II. The first fund closed in 2017 at $281.7 million and invested in real real estate in primary and secondary markets throughout Asia-Pacific.
The partnership extends the 13-year relationship of Hostplus and Apollo. According to Hostplus CEO David Elia, the launch of Asia Pacific Credit Strategy is part of the Australian superannuation fund’s investment strategy to further diversify its investment portfolio.
“Credit plays an important role in our strategic asset allocation to ensure we spread investment risk and help stabilize our investment portfolio, smoothing the ups and downs of investment market cycles,” Elia added.