Apollo plans Euronext listing following KKR’s lead

US-based buyout firm Apollo Management is preparing to list a US$1.5bn–$2.5bn private equity fund that will invest in its closed funds and future deals.

Apollo will also list its vehicle on Euronext underwritten by Citigroup, Credit Suisse, Goldman Sachs and JPMorgan. Its European listing follows the US$930m it raised in 2004 through a public vehicle in the US.

The move also follows rival Kohlberg Kravis Roberts’ raising US$5bn on the Amsterdam market of Euronext a few weeks earlier.

The KKR fund was substantially oversubscribed from its own US$1.5bn target, which led to it closing at US$5bn. The money was being put into cash and so, after IPO fees, has been trading below par.

Rivals such as Blackstone, Carlyle and Texas Pacific are also understood to be considering similar IPOs. However, one source close to these parties said the issue was not clear-cut.

Part of his concern was whether the KKR and Apollo vehicles would mop up the liquidity for such vehicles. However, on a more fundamental level, he said presentations to public markets would require a change of mindset to a traditionally more secretive private equity firm and the obligation to put the money to work very quickly could affect returns.

However, there is a battle among the top tier buyout firms to raise more money through the traditional, limited partner structure and now through public, evergreen vehicles.

One senior industry player said: “Having the largest fund is not important in ego terms, but is important in getting on the shortlist of the largest public-to-privates, as listed companies want to work with fewer [potential buyout partners] for secrecy.”