Apollo to acquire RE specialist Bridge Investment Group
Apollo has entered into an agreement to acquire real estate specialist Bridge Investment Group in an all-stock transaction with an equity value of approximately $1.5bn (£1.2bn).
The acquisition will further expand Apollo’s origination capabilities in residential and industrial real estate, in line with the firm’s long-term growth strategy.
Bridge has approximately $50bn of assets under management in real estate products targeting both institutional and wealth clients.
The deal will provide Apollo with immediate scale to its real estate equity platform and will also enhance Apollo’s origination capabilities in both real estate equity and credit, as the firm seeks to build out the real estate side of its business.
“We are pleased to announce this transaction with Bridge, which is highly aligned with Apollo’s strategic focus on expanding our origination base in areas of our business that are growing but not yet at scale,” said Apollo partner and co-head of equity David Sambur.
Read more: Apollo origination hits record high of $222bn
“Led by a respected real estate team including executive chairman Bob Morse and chief executive Jonathan Slager, Bridge brings a seasoned team with deep expertise and a strong track record in their sectors.
“Their business will complement and further augment our existing real estate capabilities, and we believe we can help scale Bridge’s products by leveraging the breadth of our integrated platform.”
Following the closing of the transaction, Bridge will operate as a standalone platform within Apollo’s asset management business, retaining its existing brand, management team and dedicated capital formation team. Morse will become an Apollo partner and lead Apollo’s real estate equity franchise.
“We are proud to be joining Apollo and its industry-leading team, who share our commitment to performance and excellence,” said Morse.
“This transaction will allow the Bridge and Apollo teams to grow on the strong foundation that Bridge has built since 2009 as we work to pursue meaningful value and impact for our investors and communities.
“With Apollo’s global integrated platform, resources, innovation and established expertise, we are confident that Bridge will be positioned for the next phase of growth amid growing demand across the alternative investments space.”
Read more: Apollo partners with wealth management platform InvestCloud
Moody’s Ratings analyst Neal Epstein said that the acquisition will extend Apollo’s investment capabilities in areas that align with it strategic objectives.
“Bridge is one of the largest private equity real estate managers with $22bn in fee-paying assets under management,” Epstein said.
“It has strong capabilities in residential real estate equity, as well as capabilities in real estate debt and mid-market secondaries, with significant capital sourced from high net worth and wealth management channels.
“The acquisition of Bridge will further a number of Apollo’s strategic objectives, including growing its global wealth business, and expanding its alternative management capabilities in real estate. The all-equity acquisition will have minimal leveraging impact on Apollo, which also continues to build its balance sheet’s liquid resources.”
Read more: Apollo affiliate Redding Ridge AM acquires Irradiant Partners
