Apollo Closes $6.5 Billion Third Hybrid Value Fund with Global Investors

APOAPO

Apollo closed its Hybrid Value Fund III with $6.5 billion in investor commitments, surpassing Fund II’s $4.6 billion raise in 2022. The fund attracted a diverse global base including pension funds, sovereign wealth funds, insurers and endowments for structured equity investments.

1. Fund III Final Close

Apollo secured approximately $6.5 billion in total commitments for its Hybrid Value Fund III, reflecting strong demand from both new and existing investors across multiple regions.

2. Hybrid Value Strategy

The fund targets structured equity opportunities—including preferred and convertible securities—to provide growth capital, support acquisitions, offer shareholder liquidity, and optimize balance sheets while balancing downside protection with equity upside.

3. Track Record and Growth

Building on $3.3 billion raised by HVF I in 2019 and $4.6 billion by HVF II in 2022, Apollo’s hybrid platform continues to expand its capital base and broaden its partnership-oriented solutions.

4. Investor Base and Implications

Commitments came from pension funds, sovereign wealth funds, insurance companies and endowments, enhancing Apollo’s fee-related earnings potential and underscoring institutional confidence in its hybrid capital franchise.

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