Private equity firm Apollo Global Management has completed its purchase of a 17% incremental stake in retirement services firm Athene, bringing its beneficial ownership in the company to 34%.
First announced in October 2019, this purchase came as part of a wider alignment push between the two companies that also saw Apollo eliminate its multi-class share structure.
The parties explained that the elimination of the share structure should significantly improve Athene’s index inclusion eligibility and expand its investor base
“We are pleased to announce the closing of this strategic transaction between Athene and our longstanding strategic partner, Apollo,” said Jim Belardi, CEO of Athene.
“With the recent overwhelming shareholder approval, Athene has eliminated its historical multi-class share structure and is now fully eligible for inclusion in a major S&P index,” he explained. “Importantly, this transaction will broaden our appeal to a wider range of both active and passive investors.”
“We view our new direct investment in Apollo as strategic in nature, and look forward to participating in Apollo’s robust growth, profitability, and yield characteristics.”
Leon Black, Chairman and Chief Executive Officer of Apollo, also commented: “We are tremendously excited to announce the completion of this important strategic transaction, which we believe meaningfully enhances value for both Apollo and Athene shareholders.”
“Athene and Apollo have developed a special and symbiotic relationship since Athene’s inception more than a decade ago,” Black went on. “By nearly doubling our ownership in Athene to approximately 34%, we are reinforcing the durability of our relationship, and enhancing the strong alignment between the two companies.”
“In addition, as a result of Athene’s new ownership stake in Apollo, which represents its single largest investment, Athene now has a direct economic interest in Apollo’s financial success for the first time.”
Apollo’s operating group entities acquired 35.5 million Class A Common Shares of Athene in exchange for $350 million of cash and an approximately 7% equity stake in Apollo’s operating group entities (29.2 million Apollo operating group units).
