- Apollo’s eighth flagship fund tips scales at $12B
- Firm mum on additional details
- Fund increased by $3.6 billion in the quarter
Apollo’s fundraising operation pulled in about $3.6 billion for Apollo Investment Fund VIII LP during the third quarter, adding to the $8.4 billion level disclosed in the prior quarter, officials revealed on a quarterly earnings call.
Wall Street analysts asked for additional color on dollar-size expectations for the fund after recent reports that Apollo asked LPs about hiking the limit to $15 billion, or possibly as high as $20 billion. But Apollo stood firm at the $12 billion, while disclosing other details about Fund VIII.
Apollo CFO Martin Kelly said Fund VIII commenced its investment period on Sept. 1, adding about $10 billion to fee-generating assets under management.
“Looking forward, although we cannot provide specific guidance, we expect to see a catch-up in management fees within our private equity segment, upon subsequent closings of Fund VIII, as well as incremental recurring management fees, based on any additional commitments to Fund VIII,” Kelly said.
Apollo said its private equity funds have generated a 39 percent gross IRR, and 26 percent net IRR, since Apollo’s inception in 1990. During the third quarter, the fair value of its private equity funds appreciated by 18 percent, outpacing a 5 percent gain in the S&P 500.