Apollo Global Management is buying the U.S. wealth distribution and $5 billion asset management businesses of retail manager Griffin Capital, an Apollo spokeswoman said in an email.
Terms of the deal were not disclosed.
Griffin has “one of the only scaled distribution teams” in the U.S. exclusively focused on alternative investments. Apollo executives currently has relationships with private banks, wirehouses, registered investment advisers and family offices.
The acquisition would get Apollo closer to its goal to raise $50 billion from retail investors through its global wealth business over the next five years. Between 2018 and 2020, Apollo has raised an average of $18 billion a year from retail investors, amounting to an average of about 5% per annum of total capital raised by Apollo during that period, according to an Apollo October Investor Day presentation. Apollo expects retail investor capital will account for 30% of capital raised by around 2026. Apollo does not disclose its global wealth business’ current assets under management, the spokeswoman said.
The acquisition would also provide Apollo with more investment products they can offer to high net worth and mass affluent investors.
The transaction is expected to be completed by the first half of 2022.
This is not Apollo’s only recent push into the retail investor market. In October, Apollo launched a non-traded perpetual-life business development company, Apollo Debt Solutions BDC.