Apollo has raised $6.5bn (£4.8bn) for its Hybrid Value Fund III (HVF III) at final close, a vehicle targeting opportunities that sit between traditional debt and equity.
The fund is the latest vintage in the firm’s hybrid value strategy, attracting commitments from both new and existing investors. Backers include pension funds, sovereign wealth funds, insurers, endowments, as well as other institutional and private wealth investors.
The strategy primarily invests in structured equity opportunities, including preferred and convertible securities, and provides capital solutions to support growth initiatives, acquisitions, shareholder liquidity and balance sheet optimisation, the $938bn alternative asset manager said.
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“We are grateful for the strong support from both new and existing investors in HVF III, which we believe reflects continued confidence in our strategy and track record,” said Jason Scheir, partner and head of hybrid value at Apollo. “We have built the hybrid value franchise to deliver bespoke, partnership capital at scale, and we remain focused on generating attractive risk-adjusted returns for our investors.”
The latest fund follows Apollo Hybrid Value Fund I, which closed at $3.3bn in 2019, and Apollo Hybrid Value Fund II, which closed at $4.6bn in 2022.
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“We believe hybrid strategies offer a compelling risk-reward framework for investors as they navigate market cycles and the current period of elevated uncertainty,” said Matt Nord, co-head of private equity and head of hybrid at Apollo.
Paul, Weiss, Rifkind, Wharton & Garrison advised Apollo on the closing of HVF III.
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