Market Insight | Overheard at Apollo
June 13, 2023
Overheard @ Apollo: Hybrid Public-Private Financings
“I expect hybrid [public-private] financings to become a more frequent feature of the European market… we think deals like this will offer a model for increased partnership going forward.”
On the latest episode of Overheard @ Apollo, we hear from Co-Head of European Credit Tristram Leach about Apollo-managed credit funds' recent commitment to help finance Asda’s acquisition of EG Group’s UK assets and the opportunities for more hybrid private-public financing structure
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Innovation has helped to destigmatize GP-led transactions, establishing the practice as a mainstream liquidity management tool for GPs today. In this paper, we explore how GP-led deals can offer concentrated exposure to high-quality managers and assets, compounding the overall advantages of secondary strategies.
Apollo's Hybrid team partnered with Global Schools Group, a leading private international education company based in Singapore, on multiple financings to launch the company's international expansion and maintain its exceptional track record of academic outcomes for students.
With rates still expected to stay “higher for longer,” risk premia in public equities and public fixed income is narrow. In our view, private markets can offer options, especially in private equity secondaries, large corporate direct lending, asset-backed finance, and other areas.
