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Apollo Seeks $5.5 Billion in Capital for Life-Related Deals

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Apollo Global Management LLC is preparing to raise about $9 billion, and about $5.5 billion of that money could go toward investments related to life insurance and annuities.

(Related: Credit Markets Are In `Bubble Status’: Apollo’s Leon Black)

Apollo gave some information about the effort in a document filed with the U.S. Securities and Exchange Commission.

Hema Parmer, a reporter at Bloomberg, has reported additional details in an article based on a review of documents related to efforts to start a number of new investment funds.

Apollo has been managing about $280 billion in assets.

The company controls Athene Holding Ltd. Athene, in turn, controls the old Aviva USA.

Apollo plans to raise $4 billion through an effort that would let investors join in deals alongside Athene, according to Parmer.

The company is also raising $1.5 billion that would be invested in life settlements ad insurance-linked securities.

Apollo notes in an SEC filing that Athene invests most of its assets in securities, including investments in debt issued by private companies, and that Athene also invests a portion of its assets through an affiliate MidCap FinCo Holdings Ltd.

Offshore Athene insurance subsidiaries are excluded from investment company status by SEC regulations, and Athene Holding does not come under the definition of “investment company” because of another exclusion, Apollo says.

In the filing, Athene asks the SEC to classify Athene and MidCap as entities that can operate as investors in the new funds.

“Applicants do not believe that allowing Athene and MidCap to participate in Co-investment Transactions as Affiliated Funds raises any additional legal or policy concerns not otherwise raised by allowing a Regulated Fund to co-invest with one or more Affiliated Funds,” Athene says in the filing.

Athene and MidCap are simply clients of the entities involved that operate as advisors, Apollo says.

“Accordingly, applicants request that Athene and MidCap be permitted to participate in Co-investment Transactions as Affiliated Funds,” Apollo says.


A copy of Apollo’s SEC filing related to the new funds is available here.

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