Apollo Global Management is one of the world’s largest alternative investment managers, managing assets across private equity, credit and real estate. Founded in 1990, Apollo has raised over 20 private equity funds and invested in hundreds of companies across many sectors. Here is an overview of some of Apollo’s major private equity funds and notable investments over the years:
Apollo Investment Fund I raised $400 million in 1990 as Apollo’s first fund. Early investments included distressed companies like National Equipment Services and Arrow Automotive. The fund was an early success for Apollo’s distressed investing strategy.
Apollo Investment Fund II raised $1.1 billion in 1995, representing significant growth in assets. Investments shifted towards more control-oriented buyouts in industries like chemicals, telecom and manufacturing. Major deals included the $500 million leveraged buyout of Tyrone International Group.
Apollo Investment Fund III raised $1.5 billion in 1998, further cementing Apollo as a top-tier private equity firm. Notable deals included the $1.2 billion acquisition of Vail Resorts, marking Apollo’s largest buyout at the time, and the buyout of chemical company Hexion Specialty Chemicals.
Apollo Investment Fund IV raised $3.6 billion in 2001. Investments focused on healthcare, manufacturing and distribution companies. The fund acquired 51% of CKE Restaurants, owner of Carl’s Jr. and Hardee’s, for $690 million.
Apollo Investment Fund V raised $3.8 billion in 2005. Major deals included the $7.2 billion buyout of Harrah’s Entertainment, the $6.6 billion acquisition of Realogy and the $1.3 billion buyout of Claire’s Stores.
Apollo Investment Fund VI raised $10.2 billion in 2008, Apollo’s largest fund at the time. Notable investments were the $7.15 billion acquisition of Linens ‘n Things and the $2.54 billion leveraged buyout of Aspen Insurance Holdings.
Apollo Investment Fund VII raised $14.7 billion in 2013. Key deals included the $6.9 billion purchase of food packaging company RPC Group and the $1.1 billion acquisition of Presidio.
Apollo Investment Fund VIII raised $18.4 billion in 2017, again breaking the record for Apollo’s largest private equity fund. Major investments have included the $2.2 billion take-private of Smart & Final and the $2.5 billion buyout of LifePoint Health.
Apollo Investment Fund IX raised $24.7 billion in 2019, cementing Apollo as one of the largest private equity firms globally. The fund is still actively investing across Apollo’s core sectors.
In total, Apollo has made over 400 private equity investments through its various funds in companies around the world across a diverse range of industries. The firm pioneered the private equity strategy of distressed buyouts and has grown into one of the investment giants over its 30+ year history.
Apollo Investment Fund I marked the beginning of Apollo’s distressed investing strategy in 1990
Apollo Investment Fund I was the first private equity fund raised by Apollo Global Management shortly after the firm was founded in 1990. With $400 million in capital commitments, Fund I focused primarily on distressed investments and turnarounds of troubled companies.
Early Fund I investments included National Equipment Services, a equipment rental company that Apollo acquired out of bankruptcy, and Arrow Automotive, another distressed buyout in the auto parts sector.
This fund established Apollo’s strategy of targeting companies in financial or operational distress where Apollo could use its restructuring expertise to turn the business around. While the fund size was small compared to Apollo’s later mega-funds, it represented an important start and enabled the firm to hone its distressed investing approach.
Apollo Investment Fund II grew significantly in size and shifted to more control buyouts
With the success of its first fund, Apollo raised $1.1 billion for Apollo Investment Fund II in 1995, almost triple the size of Fund I.
While Apollo continued to target some distressed turnarounds, Fund II expanded more into traditional control buyouts of stable companies across sectors like chemicals, telecommunications, manufacturing and distribution.
One of the largest Fund II deals was the $500 million acquisition of Tyrone International Group, a manufacturer of tire additives and equipment. Other major investments included the buyouts of Superior Essex Communications, a wire and cable company, and Marmac, a provider of pipeline coatings.
In total, Apollo deployed $1.6 billion of capital from Fund II into 17 companies. The increased fund size and shift to more corporate buyouts propelled Apollo’s rise as a leading private equity firm.
Apollo Investment Fund III marked Apollo’s emergence as a top-tier private equity firm
With the closing of Apollo Investment Fund III in 1998, Apollo had firmly established itself as a top-tier private equity manager. Fund III raised $1.5 billion to target both distressed turnarounds and traditional buyouts.
One of the most notable Fund III deals was the $1.2 billion acquisition of Vail Resorts, the leading global mountain resort company and owner of Vail Mountain. This represented Apollo’s largest buyout deal at the time.
Other major Fund III investments included the buyout of chemicals company Hexion Specialty Chemicals for $1.1 billion and the acquisition of National Cinema Network, one of the largest cinema advertising companies.
In total, Apollo deployed $2.7 billion from Fund III into 17 companies globally. The fund’s strong performance further enhanced Apollo’s reputation as a highly successful private equity investor.
Apollo Investment Fund IV focused on healthcare, manufacturing and distribution deals
Apollo Investment Fund IV closed on over $3.6 billion of capital commitments in 2001, again significantly increasing the firepower available for Apollo’s private equity deals.
Fund IV focused heavily on the healthcare, manufacturing and distribution sectors. Major deals included:
– The $690 million acquisition of a 51% stake in CKE Restaurants, the owner of fast food chains Carl’s Jr. and Hardee’s.
– The $645 million leveraged buyout of National Financial Partners, a provider of benefits and wealth management services.
– The $435 million purchase of AMI Semiconductor, a maker of integrated circuits.
In total, Apollo deployed $5.3 billion of capital from Fund IV into 24 companies. While continuing with some distressed turnarounds, the fund activity centered on traditional corporate buyouts aimed at operational improvement.
Apollo Investment Fund V included some of Apollo’s largest pre-crisis buyouts
Apollo Investment Fund V closed on $3.8 billion of capital commitments in 2005. This fund pursued some of Apollo’s largest and most ambitious buyouts in the years leading up to the financial crisis and Great Recession.
Notable Fund V deals included:
– The $7.2 billion acquisition of Harrah’s Entertainment, the casino and hotel operator. This represented Apollo’s largest buyout to date.
– The $6.6 billion buyout of Realogy Corporation, parent company of real estate brands Century 21, Coldwell Banker and Sotheby’s International Realty.
– The $2.2 billion leveraged buyout of Claire’s Stores, the fashion accessories retailer.
In total, Apollo deployed $8.7 billion of Fund V capital into 18 companies before the 2008-2009 financial crisis brought the frenzied buyout market to a halt.
Over 30+ years and 20 funds, Apollo Global Management has established itself as one of the world’s preeminent private equity investors through its distressed and buyout strategies. Apollo has raised billions in investor capital and acquired hundreds of companies across sectors and geographies. From early distressed deals to mega-buyouts of iconic brands, Apollo’s private equity funds highlight the firm’s growth into an investment giant.