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Apollo’s Debt Strategy Puts it Ahead of the Pack

by

July 4, 2013

Apollo, the third-largest U.S.-based private-equity firm, with USD 114 billion under management, has outshone its peers, reports Bloomberg.

 

The article features rare details on how the US private equity giant made a USD 9.6 billion profit on USD 2 billion it invested in the debt of the world’s third largest chemicals maker LyondellBasell Industries.

 

It says the profit on that deal propelled a turnaround in Apollo’s fortunes, along with the ongoing rally in asset lifting returns across most alternative classes. Details about how Apollo followed a strategy of buying up debt post-financial crisis and how that risk netted significant returns.

 

About 40 percent of Apollo’s private-equity bets have involved distressed targets, basically “buying good companies with bad balance sheets.”  (Image source: LyondellBasell)

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