Apollo Closes Second Dedicated Infrastructure Fund
Apollo Closes Second Dedicated Infrastructure Fund with More Than $2.5 Billion in Capital Commitments.
NEW YORK, Jan. 06, 2022 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced the close of its second dedicated infrastructure fund, Apollo Infrastructure Opportunities Fund II LP (“AIOF II”), with approximately $2.54 billion in capital commitments.
Receiving strong support from a diverse base of new and existing investors, AIOF II will continue its strategy of investing in mid-market infrastructure assets primarily across communications, power and renewables, and transportation. The latest dedicated investment vehicle builds on Apollo’s 30-year track record in which it has invested more than $20 billion in infrastructure-related opportunities across its platform. Led by Partners Dylan Foo and Geoff Strong, the firm’s dedicated infrastructure business currently manages approximately $6 billion in infrastructure-related assets around the world.
“This is an incredibly exciting time to invest in infrastructure assets and to build our infrastructure franchise here at Apollo with our second dedicated fund,” said Geoff Strong, Partner and Co-Head of Infrastructure and Natural Resources at Apollo. “We’re grateful for the strong support of our limited partners, and we continue to differentiate ourselves in the market by focusing on scalable acquisitions in the middle market, structured solutions, and carve-out opportunities. We also expect to continue leaning into big-picture trends like the global energy transition and bridging the digital divide, where we have significant experience and expertise.”
Apollo Partner and Co-Head of Infrastructure Dylan Foo added, “This is a great milestone for our Infrastructure business as we look to become the leading global mid-market manager for high quality infrastructure assets. The expertise of our infrastructure team coupled with the extensive resources of our broader investment platform at Apollo have enabled us to execute complex and creative infrastructure investments with a strong focus on ESG. We will continue to partner with our investors to build on the momentum from our latest fund.”
As the demand for private investment in infrastructure continues to grow, Apollo has been at the forefront of key growth sectors, including renewable and transitional energy assets. Already, AIOF II has invested in leading energy storage and renewable energy platform, Broad Reach Power; formed the Ionic Blue joint venture with Johnson Controls to provide sustainability and energy efficiency services; created a joint venture to grow Great Bay Renewables’ renewable royalties business; and invested in U.S. Wind, a leading utility-scale offshore wind platform off the coast of Maryland. Recently, outside of AIOF II, the infrastructure team also led an $816 million investment to finance NextEra Energy Partners’ stake in a 2.5 GW renewable energy portfolio of 13 utility scale wind and solar assets.
AIOF II has also been active in telecommunications, investing in FirstDigital Telecom, a leading fiber-based carrier in the western United States, as well as acquiring Parallel Infrastructure, a US telecommunications platform with a portfolio of approximately 500 macro cell towers in operation and several hundred more under development.
Paul, Weiss, Rifkind, Wharton & Garrison represented Apollo in connection with the close of AIOF II.