Apollo Prepares To Launch Fund VIII

Firm: Apollo Global Management

Fund: Apollo Investment Fund VIII LP

Target: Undisclosed

Apollo Global Management, the buyout shop headed by Leon Black expects to be out in the market later this year for its latest mega fund, Apollo Investment Fund VIII LP, according to Marc Spilker, Apollo’s president, sister Web site peHub reported. Spilker disclosed the plan on an earnings call discussing Apollo’s second quarter results.

Analysts on the call noted that Apollo’s Fund VII, which raised $14.7 billion in 2008, was nearly fully invested. “It’s reasonable to expect that later this year we will launch Fund VIII,” Spilker said in response to questions. “We’re getting much closer.”

Total invested capital for Fund VII was $13.1 billion, according to Apollo’s second quarter release. The fund, as of June 30, has produced a gross IRR of 33 percent and a net IRR of 23 percent.

In April, peHub reported that Apollo would be out marketing soon for Fund VIII. However, it’s still unclear how much the New York buyout shop will be looking to raise. Apollo has the flexibility to go between buyouts and distressed investing. With fund VII, the PE firm focused on distressed transactions that have done well, a source has told peHub.

Apollo’s quarterly earnings plunged 66 percent as the value of its portfolio was dragged down by turbulent markets.

(Luisa Beltran is a senior writer for peHub.)