Apollo Targets $25 Billion for Flagship Private Equity Fund

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(Bloomberg) -- Apollo Global Management Inc. is readying what could mark its largest ever private equity fund.

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Apollo is looking to gather $25 billion of capital for the fund, which is expected to launch early next year, according to people with knowledge of the matter, who asked not to be identified discussing private information. At $25 billion, Apollo’s 11th fund dedicated to private equity would be the largest yet, after the asset manager fell short of the same target last year and raised just under that in 2017.

A representative for Apollo declined to comment on specific funds.

Private equity firms are looking to raise record fund volumes as the market for initial public offerings and a lower rates trajectory is expected to give the industry a much-needed boost next year. Deal-making has suffered in recent years as distributions to investors slowed and the cost of financing soared, but some are already noting increased investor interest to the asset class ahead of some of the mammoth fundraising ambitions.

Some of these firms are also starting to exit more of their investments. In the third quarter, Apollo said it had seen “sizable monetizations,” or sales, within its flagship private equity funds which led to its realized performance fees reaching their highest level since 2021.

Apollo’s private equity business, led by David Sambur and Matt Nord, closed its 10th fund at around $20 billion, and has deployed more than half of that so far. The firm has signed deals for acquisitions including gambling machines company Everi Holdings Inc, Travel Corp., package-delivery company Evri and chemical company Univar Solutions.

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