European Principal Finance
Our Approach
European Principal Finance is an established platform at the nexus of Apollo’s core competencies. We seek to identify excess returns in credit and real asset-oriented special situations assets by focusing on complex, misunderstood and mispriced real assets. Our European Principal Finance business (“EPF”), founded in 2008, has grown to be the second largest closed-end fund product at Apollo behind our private equity platform.
EPF draws on Apollo perspectives across credit, real assets and private equity. The business seeks to capture European deleveraging opportunities across non-performing loans, opportunistic and distressed real estate assets and a variety of asset types that no longer work on regulated balance sheets. We've combined Apollo’s resources and investment philosophy in EPF to seek to find excess yield in a downside-protected risk-adjusted manner.
At-A-Glance
€52B+
Transaction Value
100+
Transactions in 15 Years
20+
Investment Professionals
14
On-the-Ground Presence in European Countries
As of December 31, 2023
Discount to Asset Value
Income / Rehabilitated Yield
Value-Add during Ownership
Residual Value (Asset Appreciation / Yield Compression)
Key Components
Non-Performing and Non-Core Credit
- Non-performing credit assets from banks, insurers and state asset management companies
- Real estate-owned ("REO") portfolios owned by financial institutions
- Structured non-performing loan ("NPL") and REO joint ventures
Asset-Backed Capital Solutions
- Private structured debt or equity “capital” structure-gap solutions
- Non-core, capital inefficient run-off credit portfolios
- Discounted payoff (“DPO”) financings to borrowers
- Bespoke structured credit or asset-backed securities
Special Situations
- Forced and distressed sellers of real estate, usually in portfolio format
- Complex, undervalued real estate corporate structures
- Thematic real estate aggregation strategies
Related Insights
Real Assets | Investment Insight
Mind the (Funding) Gap: Finding Opportunities in Real Estate Debt Amid Dislocation
Higher interest rates have pressured real estate prices, but fundamentals remain stable across most property types. In this class, Scott Weiner, Global Head of RE Credit, examines the state of the real estate market and discusses the opportunity in RE debt in light of wider spreads, more lender-friendly terms, and significant refinancing needs.
Have you ever wondered which historical figure Boris Olujic would choose to have dinner with? We have too! Check out the latest episode of 9@9 to hear about his dream dinner guest, favorite aspects of the London office and more!
Apollo Chief Economist Torsten Slok and Vice Chairman of Global Real Estate Philip Mintz discuss investment opportunities amid a still-volatile economic environment. They cover a lot: credit, equity, and real estate valuations, portfolio allocations, and much more.
