Apollo Global Management is planning to launch a new infrastructure equity investment platform following its USD 1bn acquisition of energy assets from GE Capital, Co-founder and Senior Managing Director Josh Harris said during the firm’s 3Q18 earnings call.
“We are excited by the unique opportunity to extend our distinct infrastructure capabilities and launch a new equity investment platform,” Harris of Apollo said. “The foundation of this platform will have what we believe is an attractive portfolio of cash generating assets from its inception.”
Apollo is looking to leverage its relationship with GE Capital to source deals for the new platform. Co-President Scott Kleinman said during the call that the platform would have the “first look” at deal opportunities arising from GE’s power equipment, sales business and existing clients looking for different financing arrangements.
The new equity platform is expected to complement Apollo’s existing infrastructure credit strategies, which include a portfolio of debt investments totaling roughly USD 1.5bn. It will have a target internal rate of return (IRR) ranging from 10% to 13%, according to Kleinman.
Apollo acquired a portfolio of predominantly US-based energy asset investments from GE Capital in a transaction announced on 8 October.