Apollo has raised $1.9bn (£1.4bn) at final close for the latest vintage in its dislocated credit series.
Apollo Accord Fund VII has drawn capital from global investors, including pension funds, financial institutions, endowments, foundations and family offices.
The fund is part of the firm’s Accord Dislocation Series, which has raised $11.6bn since its inception in 2017, Apollo said. The strategy targets dislocated liquid credit during periods of market volatility, alongside select idiosyncratic and issuer-driven opportunities in more stable market conditions.
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“We are operating in a period of heightened volatility driven by elevated valuations, increased geopolitical and macroeconomic risk and rapid AI-driven disruption,” said Chris Lahoud, partner and deputy co-head of hybrid at Apollo. “We believe periods of volatility and dispersion create compelling opportunities for capital providers who are prepared to act decisively.”
Apollo, which manages $938bn in assets, said the strategy’s investment approach focuses on the top of the capital structure across both primary and secondary markets.
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“The strong demand for Accord VII reflects sustained confidence in the strategy and the important role it plays within diversified portfolios,” Akila Grewal, global head of the institutional client group at Apollo said. “In dynamic market environments, we believe the fund’s flexible mandate can help investors take advantage of volatility with an emphasis on senior positioning within the capital structure.”
Paul, Weiss, Rifkind, Wharton & Garrison represented Apollo in connection with the closing of Accord VII.
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