Spreading its Wings, Apollo Global Management Buys Stake in MaxCap as it Searches for Other Debt Originators
Posted on 09/10/2021
Disclosed on September 7, 2021, Apollo Global Management, Inc. said clients managed by its affiliates have entered into a definitive agreement to acquire up to a 50% equity stake in MaxCap Group (MaxCap Group Pty Ltd), an Australasian commercial real estate financier and fund manager. Founded in 2007, MaxCap is headquartered in Melbourne. Following completion of the deal, MaxCap co-Founders Wayne Lasky and Brae Sokolski will continue to lead the company and retain the remaining shareholdings. In Australia, the big four domestic banks had dominated real estate lending. Firms like MaxCap have been able to form as regulatory intervention imposed capital adequacy rations on the big four banks.
Currently, Apollo originates commercial real estate debt and equity solutions across North America, Europe and Asia, and through this transaction expects to increase its activity in Australasia.
The Apollo funds’ investment in MaxCap was the latest extension of its investment origination platforms. It follows a recently announced transaction with Foundation Home Loans, a specialist U.K. mortgage lender, as well as a strategic agreement with Victory Park Capital in the US to invest in asset-backed credit facilities for emerging companies. On July 15, 2021, Athene Holding Ltd. entered into a definitive agreement to acquire Foundation Home Loans, a specialist UK mortgage lender from funds managed by affiliates of Fortress Investment Group LLC. As of June 2021, FHL had a £3 billion portfolio of specialist buy-to-let and owner-occupied mortgages on its balance sheet. The investment in FHL will be managed by the team at Apollo Global Management.
Apollo’s strategy to build, buy, and partner with proprietary origination platforms enhances the firm’s ability to source and structure investments for its insurance and institutional clients.