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Apollo secures Hostplus mandate

Apollo Global Management has entered a strategic partnership with Hostplus to launch an Asia Pacific credit strategy.

The new credit strategy launches with US$1.25 billion in assets, following an inaugural raise that included a $500 million anchor commitment from Apollo's insurance balance sheets and Hostplus.

The strategy is designed to leverage Apollo's credit expertise and differentiated asset origination to source high-quality opportunities across the yield spectrum. It will focus on Australia, India, Singapore, South Korea, and Hong Kong, with select deployment in other parts of the region.

Apollo said the dedicated strategy will bring its global credit platform together with local expertise to capitalise on the growing demand for private credit in Asia Pacific. This would provide companies and sponsors with flexible and bespoke solutions, it added.

Hostplus chief executive David Elia said he is pleased to extend the super fund's 13-year relationship with Apollo.

"This launch is part of our broader investment strategy to help to further diversify our investment portfolio to protect and grow our member investments over the long-term," Elia said.

"Credit plays an important role in our strategic asset allocation to ensure we spread investment risk and help stabilise our investment portfolio, smoothing the ups and downs of investment market cycles."

Apollo co-president Jim Zelter commented: "This strategy is a natural extension of our global credit capabilities and reflects growing demand in the region for flexible, expedient capital solutions from non-bank lenders."

Zelter also expressed great enthusiasm for the Asia Pacific credit strategies alignment with long-time partner Hostplus who he said "share in [our] disciplined investment philosophy."

Apollo partner and head of Asia Pacific Matt Michelini added: "This new strategy seamlessly combines our global capital base and ability to provide large-scale, differentiated, cross capital structure solutions with local expertise and origination."

Michelini praised how the new credit strategy demonstrates Apollo's continued progress in building its team, capabilities and growing credit needs of companies in Asia Pacific.

The launch of the strategy follows increased investment activity in APAC for Apollo.

Recently, Apollo helped to structure and made a cornerstone investment in a $150 million sustainability-linked note issuance for Ampol in Australia, with targets that included carbon emission reductions and installation of EV charging points supported by 100% renewable energy.

In addition to the asset manager's increased investment in the region, Apollo has continued to grow its partnership with key Asian and Australian investors. Since 2017, Apollo has raised more than $22 billion from institutional investors in the region.

Read more: HostplusApollo Global ManagementDavid EliaJim ZelterMatt MicheliniPrivate creditSuperannuation