European Principal Finance

European Principal Finance

Our Approach

Our Approach

Finding value in complexity 

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

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

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Discount to Asset Value

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Income / Rehabilitated Yield

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Value-Add during Ownership

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Residual Value (Asset Appreciation / Yield Compression)

Key Components

Key Components

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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 
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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
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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

Related Insights

Explore Our Other Real Asset Strategies

Explore Our Other Real Asset Strategies