- $840 billion firm preps European Long-Term Fund (ELTIFs) targeting direct lending, multi-asset credit, and private equity.
- Apollo’s private wealth platform raised $9 billion in H1.
- Over €20 billion held in active semi-liquid European credit funds.
Apollo Global Management is preparing to launch three new ELTIFs as it continues to build out its global private wealth business.
The $840 billion alternative asset manager has received regulatory authorization to launch the Apollo European Private Credit ELTIF (AEPC), Apollo Global Diversified Credit ELTIF (AGDC), and Apollo Global Private Markets ELTIF (AGPM), all of which are expected to come to market “in the coming months,” according to a statement from the firm.
AEPC will invest in senior-secured direct lending loans to European upper-middle market companies, while AGDC will run a global multi-asset credit strategy, investing in sub-strategies including direct lending and asset-based finance.
Finally, AGPM will invest in global secondaries and co-investment opportunities sourced across Apollo’s platform.
All three are structured as evergreen, semi-liquid funds and will be marketed under the Apollo Private Markets SICAV, a Luxembourg-domiciled vehicle which launched in May 2023 to offer “a holistic set of Apollo’s alternative solutions” to private wealth investors in EMEA, Asia, and Latin America.
The launches come as Apollo, like other large asset managers, continues to build out its private wealth platform.
The firm’s wealth business recorded $9 billion of inflows in the first half of the year, split between 18 separate strategies.
Apollo’s flagship non-traded BDC, Apollo Debt Solutions, now has $21.8 billion in AuM, and the firm is looking to achieve similar scale for its new asset-based finance product, Apollo Asset-Backed Credit Company.
The firm is also in the process of launching a private business development company (BDC), Apollo IG Core Replacement, which will invest in asset-based finance (ABF), direct lending, high-conviction traded credit, and structured credit warehouses.
European private wealth market takes off
The launches come on the back of strong momentum in European semi-liquid fundraising this year.
According to our H1 Private Credit Fundraising Report, European semi-liquid vehicles now have over €20 billion ($23.5 billion) in AuM, with Goldman Sachs’ European Private Credit Fund surpassing €5 billion in AuM in July.
While this is still a fraction of the size of the US ’40 Act market, there are signs of further growth on the horizon.
ELTIF authorizations have skyrocketed in the past two years following the implementation of the “ELTIF 2.0” regime, which expanded the list of eligible assets in these funds.
According to our analysis of data from ESMA, there have been 50 authorizations of ELTIFs focusing at least partially on private credit since January 2024, taking the cumulative number of authorized ELTIFs to 65.
