NEW YORK, 07 Feb. 11, 2022 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced that funds as part of its Hybrid Value strategy have committed to invest $125 million in Hero FinCorp Limited (“HFL” or the “Company”). ), one of the largest private non-bank financial corporations (“NBFCs”) in India with a loan portfolio of $3.7 billion. The pledge is part of a $267 million fundraising round by the company, in which the Apollo funds are investing alongside the Hero Group, a key sponsor of HFL. This investment continues the steady pace of activity of Apollo’s Hybrid Value strategy, which has generated more than $11 billion in investment commitments since its inception.
The investment will support HFL’s growth strategy as the company continues to diversify its product offerings into personal and business lending. HFL was founded as a financier for the customers of its parent company, Hero Motocorp, the world’s largest two-wheeler manufacturer, and the company has since grown to become one of the fastest growing NBFCs. fast in India. With this fundraising, HFL was looking for a value-added capital partner to help execute its growth plans in various product segments. Apollo’s Hybrid Value team was able to create a timely equity solution, enabling HFL’s shareholders and management team to pursue their goals.
“We are delighted to support Hero FinCorp through our Hybrid Value platform, helping the company accelerate its growth in an industry that we believe has significant tailwinds in India,” said Matt Michelini, Partner, Head of Asia-Pacific and co-head of hybrid value. to Apollo. “Our team is delighted to strategically partner with the Munjal family to help them grow their financial services business, one of Hero Group’s premier franchises. This is Hybrid Value’s third investment in Asia over the past of the past 9 months, underscoring our continued focus on expanding Apollo’s presence in Asian markets, including India.
Rob Ruberton, Apollo Partner and Co-Head of Hybrid Value, added: “This investment demonstrates how Hybrid Value continues to work with shareholders and management teams to structure tailored capital solutions to help them achieve their goals.We believe that our industry expertise, global presence and extensive relationships position us to act as a value-added capital provider for a wide range of public and private companies, while finding attractive opportunities for our investors.
The investment demonstrates how Hybrid Value provides strategic capital to businesses, most often in the form of non-controlling equity and debt capital solutions that meet an organization’s specific needs. Over the past 18 months, Hybrid Value Strategy funds have invested in market-leading companies across multiple industries and geographies, including WR Grace, JSW Cement, Global Schools Group, US Acute Care Solutions, Alorica and Albertsons in various purposes. including mergers and acquisitions, pre-IPO financing, liquidity solutions and growth capital.
Apollo’s $14 billion Hybrid Value business works in an integrated fashion with the company’s private equity and credit teams to leverage Apollo’s deep expertise in industry and structuring. As demonstrated by its recent investment in HFL, the company can invest at scale and quickly, and companies can benefit from Apollo’s global network of resources and track record of creating value.
The investment in HFL is subject to the satisfaction of customary closing conditions, including receipt of certain regulatory approvals, and is expected to close in the second quarter of 2022. Shardul Amarchand Mangaldas & Co acted as legal counsel to the Apollo Funds .
Apollo is a high growth global alternative asset manager. In our asset management business, we seek to provide our clients with excess return at every stage of the risk-reward spectrum, from investment quality to private equity, with a focus on three business strategies: return , hybrid and stocks. For more than three decades, our investment expertise on our fully integrated platform has met our clients’ financial return needs and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by offering a range of retirement savings products and acting as a solution provider to institutions. Our patient, creative and knowledgeable approach to investing aligns our clients, the companies we invest in, our employees and the communities we impact, to expand opportunities and achieve positive results. As of September 30, 2021, Apollo had approximately $481 billion in assets under management. For more information, visit www.apollo.com.
Global Head of Investor Relations, Apollo
Global Head of Corporate Communications, Apollo