The strategic investment positions MaxCap for strong further growth
Expands Apollo's reach into Australian markets
NEW YORK and MELBOURNE, Australia, September 7, 2021 (GLOBE NEWSWIRE) - Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries "Apollo") today announced that clients managed by its subsidiaries have entered into a definitive agreement to acquire an equity interest of up to 50% in the MaxCap group of companies (“MaxCap” or “Company”), Australia's leading commercial real estate financier and fund manager.
Founded in 2007, MaxCap is the number 1 CRE Debt* provider in the Australian market. The company is headquartered in Melbourne. Upon closing of the transaction, MaxCap co-founders Wayne Lasky and Brae Sokolski will continue to run the company and retain the remaining shares.
The strategic investment will link MaxCap to one of the world's leading wealth managers and enable continued rapid growth of the business in Australia and New Zealand. The transaction is expected to improve MaxCap's access to capital and strengthen its ability to partner with Apollo's leading lending platform to develop and deliver innovative borrower lending solutions. MaxCap expects to create significant investment opportunities for its clients and today has assets in excess of AUD$6 billion. Since inception, the firm has had a strong track record of making more than 450 investments totaling over AUD 11 billion.
For Apollo and its customers, the investment expands the company's reach into Australasia - an attractive market with significantly growing credit opportunities. Apollo currently operates commercial real estate debt and equity solutions in North America, Europe and Asia and expects to expand its Australasian operations through this transaction.
Wayne Lasky, Co-Founder and Managing Director of MaxCap, said: “We aim to offer our clients the highest quality and a wide range of investment opportunities. This transaction is an important aspect of fulfilling our promise to create lasting value for you. We look forward to achieving this, leveraging Apollo's deep industry expertise and the capital firepower they bring. This will further position us to offer compelling solutions for every sector of commercial real estate at every stage of the real estate life cycle and we are delighted to be joining forces with such a respected global manager.”
Mr. Lasky highlighted how MaxCap has created a market leading platform and built a quality Australian team. “This partnership is a game changer and a key component of our team's long-term strategic plan. We now look forward to the next phase of MaxCap's growth and to bringing further value to our customers together with a partner who shares our vision and strategy,” he said.
Scott Kleinman, Co-Chairman of Apollo, said, "Australia represents a significant long-term opportunity for Apollo and we are excited to strategically partner with MaxCap, a leader in non-bank mortgage lending with an excellent reputation." This is an exciting opportunity to to extend our native capabilities, support a strong management team and share our highly complementary platforms and expertise.”
Philip Mintz, Senior Partner, Real Estate at Apollo said: "MaxCap is an industry leader and we are pleased to provide capital and strategic support to accelerate their business and grow our operations in Australia." The company's excellent track record, its market positioning in Australia and New Zealand and its performance has made it the preferred partner for investors and borrowers. Together we see a great opportunity ahead as the non-bank real estate market in the region continues to grow.”
Mr. Mintz noted that Apollo Funds' investment in MaxCap is the latest addition to its investment startup platforms. This follows the recently announced transaction with Foundation Home Loans, a specialist UK mortgage lender, as well as a strategic agreement with Victory Park Capital in the US to invest in asset-backed loans for emerging businesses. Apollo's strategy of building, acquiring and partnering with proprietary origination platforms enhances the company's ability to source and structure investments for its insurance and institutional clients.
*PERE Global Real Estate Debt Ranking 2021
A MaxCap group
MaxCap is recognized as Australia's leading Commercial Real Estate Investment Manager (CRE) with an unrivaled track record of making 450 investments valued at over A$11.0 billion and providing all of the principal and interest from inception.
With over AUD 4 billion in funds currently under management and under advice as at 30 June 2021, we operate an institutional platform that is recognized as best-in-class and the investment manager of choice for many of Australia's and the world's largest institutional LPs. Family offices and wealthy investors. We offer our loyal investors access to the best CRE investment opportunities in both debt and equity and pride ourselves on our market-leading reputation for delivering long-term value. To learn more, please visitwww.maxcapgroup.com.au.
Apollo is a global, high-growth alternative wealth manager. We seek to provide our clients with excess returns at every point along the risk-return spectrum from investment grade to private equity, focusing on three business strategies: Return, Hybrid and Opportunism. By investing on our fully integrated platform, we serve our clients' needs for retirement income and financial return and provide companies with innovative capital solutions. Our patient, creative approach to knowledge investing aligns our clients, the companies we invest in, our people and the communities we impact to expand opportunities and create positive outcomes. As of June 30, 2021, Apollo had approximately $472 billion in assets under management. To learn more, please visitwww.apollo.com.
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This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, among other things, discussions of Apollo's expectations regarding the performance of its business, liquidity and capital resources and other non-historical statements in the discussion and analysis. These forward-looking statements are based on management's beliefs, assumptions and information currently available to management. The words “believe”, “anticipate”, “estimate”, “expect”, “intend” and similar expressions used in this press release are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. These statements are subject to certain risks, uncertainties and assumptions, including those described in the "Risk Factors" section of Apollo's Annual Report on Form 10-K filed with the SEC on February 19, 2021 and Quarterly Report on Form 10-Q are with the SEC - on May 10, 2021, as these factors may be updated from time to time in Apollo's periodic filings with the SEC, which are available on the SEC's website at www.sec.gov. These factors are not exhaustive and should be read in conjunction with other cautionary statements in this press release and other documents. Apollo undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. This press release does not constitute an offer by any Apollo fund.
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