Apollo Looks For A Private Placement

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It’s the story that won’t stand still even long enough for a blog to report on it. Last night the Wall Street Journal’s Kate Kelly and Susan Pulliam reported that Apollo has retained Goldman Sachs and JP Morgan to explore a private placement of ten percent of it’s equity, possibly for as much as $1.5 billion.
Some highlights from the WSJ:
•If 10% of Apollo goes for $1.5 billion, Apollo founder stands to make a cool $750 million because he owns half the equity of the firm. [DealBreaker’s note: Damn it feels good to be Leon Black.]
•The private placement would allow Apollo to cash in some of the value of its equity while the market for private equity is still hot while avoiding hitting the public markets with private equity offering too close to the Blackstone IPO. [DealBreaker’s note: So Apollo avoids the risk of a public market slow-down before the IPO and pushes that onto the private purchasers? Great work if you can get it.]
•A private placement wouldn’t require immediate registration with the Securities and Exchange Commission and would postpone the need to make SEC compliant financial disclosures. [DealBreaker’s note: This means the deal could get done very, very quickly. Registration and compliant disclosure take time. Roadshows and financials for institutional investors—much easier to put together.]
•Despite all these details, it’s still not 100% that this thing will even happen.

[Editor's note: Graphic is "Birth of Apollo." Hopefully more pleasing to the eye than that Blackstone IPO thing we've been throwing around lately.]

Apollo Explores Sale of 10% Stake In a Private Deal [Wall Street Journal]
Equity Firm Is Seen Ready to Sell a Stake to Investors [New York Times]

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