Global alternative asset manager Apollo has launched two products aimed at giving wealthy investors access to multi-asset secondaries.
The products include the Apollo S3 Private Markets Fund (ASPM U.S.), a perpetual tender offer fund open to U.S. accredited investors, and Apollo S3 Private Markets Lux (ASPM Lux), which will be part of Apollo’s Luxembourg-based alternative investments platform for investors in EMEA, Asia and Latin America. ASPM Lux will be accessible to local investors in multiple currencies.
The funds will invest in secondaries 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 secondaries, leveraging the collective strength of the Apollo Private Markets ecosystem and the Apollo S3 team, which has sourced over $160 billion in these types of transactions in the past year,” 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 provide a combination of attractive attributes not commonly found in other private market strategies, and we’re 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 the launch of ASPM "underscores Apollo’s commitment to providing access to institutional-quality alternative offerings tailored to individuals and wealth investors.”
During its recent investor day, Apollo executives revealed their five-year goals of raising $30 billion annually from global wealth investors, reaching $150 billion in AUM for the firm’s private wealth-centered products and doubling the size of their internal wealth team. The company claims to already sell about $1 billion a month across its existing semi-liquid products aimed at the wealth channel, including products focusing on private credit, private equity, real assets and infrastructure. Since 2021, when Apollo started targeting the wealth channel, it has grown the team to more than 100 staff members and raised a cumulative $27 billion.
Apollo CEO Mark Rowan mentioned planning several fund launches aimed at the retail channel before the end of the year during a company earnings call in August.
“We will not, as an industry, build the infrastructure required to reach the vast, 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 pieces of our product that we can originate and we like having the access and to be a joint venture partner. And I can't tell you exactly how it is going to align, but it is one of the more interesting parts of our business right now.”
Apollo is only one of an emerging cohort of alternative asset managers launching new semi-liquid funds aimed at 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.
