Apollo S3 Private Markets Fund (ASPM)

Quick Links

Overview Portfolio Team Resources Risks & Disclosures

Overview

Apollo S3 Private Markets Fund (“ASPM” or the “Fund”) seeks to provide investors a turnkey solution to access a diversified² portfolio of secondary investments across private markets. The Fund seeks to build a balanced portfolio consisting of both equity and credit secondaries, non-traditional secondaries, and other investments related or incidental to such investments with the objective of providing long-term capital appreciation.¹ ASPM pursues a differentiated approach to secondaries through a flexible mandate to invest across the capital stack, execute a variety of transaction types, and diversification across vintages and managers.

Apollo S3 provides a holistic set of financing and liquidity solutions to asset managers and LPs. As an extension of Apollo’s global platform, S3 offers partner-oriented capital across asset classes.

About

The Fund will employ an opportunistic and alpha-oriented strategy that targets a wide and diverse set of secondary investment opportunities globally and sized to flexibly target and capture what portfolio management team believes to be inefficiencies in the global secondaries market. The Fund will focus on two types of secondary investments: (i) single- and multi-asset general partner (GP) led transactions and (ii) limited partner (LP) led transactions.

Opportunity

The secondaries market has grown substantially over the past twenty years – and continues to grow, as record fundraising and investment across private markets drives potential future secondary buying opportunities. While the market initially grew due to LP liquidity needs (LP-led), sponsors are increasingly accessing the secondary market for creative solutions for their portfolios (GP-led). GP-led transactions account for approximately half of annual transaction volume today. This rise of new and innovative solutions is being driven by both LPs and GPs who are seeking increased flexibility and creativity in managing the liquidity of their private market investments, and by the increasing maturity, scale, and sophistication of the markets. This has resulted in more complex situations in which a traditional secondary transaction generally cannot achieve the goals and objectives of all stakeholders.

We believe that today's environment offers nimble and capable secondary investors depth of opportunity. ASPM is poised to capitalize on current market dynamics by providing liquidity in different capacities, transactions types, and sectors.

Potential Benefits of a Secondaries Portfolio

Access to private market

Diversification in vintage year, style, sector and manager²

Limited blind-pool risk experienced versus traditional private equity funds⁷

Potentially mitigates the impact of a j-curve with accelerated deployment³

Potential for attractive returns and less volatility¹

ASPM Key Features

Secondaries

Single point of access to private market secondaries.

Integrated Platform

S3 seeks to deliver the strengths of Apollo platform through secondaries.

Flexible Approach¹

Investing across asset classes & capital structure.

Evergreen Access⁴ ⁵

Monthly subscription, quarterly redemptions, open to accredited investors.

Value Orientation¹

Potentially attractive entry points and focus on capital preservation.

Investment Approach

ASPM follows a distinct & disciplined investment approach

Sourcing

Connectivity across the broader Apollo platform and selectivity of investment opportunities

Vetting

Efficient and systematic vetting of opportunities with a comprehensive approach to portfolio construction

Diligence

Value-driven analysis and a robust framework to measure, monitor, and evaluate risk, leveraging Apollo platform strengths and differentiators

Structuring

Culture of embracing complexity and creativity to drive solutions backed by Apollo’s structuring capabilities

Product Name	Apollo S3 Private Markets Fund
Description	Multi-asset approach to private equity, private credit, and other private assets –principally investing in secondary investments.
Structure	Perpetual, non-traded, closed-end fund registered under the Investment Company Act of 1940.
Subscriptions	Monthly
Liquidity	Targeted quarterly repurchase offers (up to 5% of the Fund’s net assets).⁴
Investor Eligibility	Accredited investors⁵
Minimum Investment⁶	$25,000 initial/$5,000 additional
Tax Reporting	1099

Team

S3 Management Team

Steve Lessar

Partner and Co-Head of S3

Veena Isaac

Partner and Co-Head of S3

Konnin Tam

Partner and Co-Head of S3

Resources

Filters

Date	Type	Title	Download

Filters

Clear All

Filters Clear All

Interested in Learning More?

Key Contacts

Global Wealth

GlobalWealth@Apollo.com

To get in touch with one of our team members, please provide us with the following information.

If you already have a relationship with Apollo, please reach out to your Relationship Manager. If you are an Investor, please connect with your Financial Advisor.

Insights and Updates

Equity | Investment Insight

PE Secondaries: Evolving Landscape Can Expand Opportunities

Decorative image featuring birds eye view of buildings

Explore Other Strategies

Apollo Credit Overview

Apollo Real Assets Overview

Apollo Equity Overview

1. There can be no assurance that investment strategies or objectives described herein will be achieved and there can be no assurances that any of the trends described herein will continue or will not reverse. The value of any investment could decline and/or become worthless.

2. Diversification does not ensure profit or protect against loss.

3. J-Curve refers to the tendency of private equity funds to post negative returns in the initial years and then post increasing returns in later years when the investments mature.

4. The Fund’s investment adviser expects to generally recommend that, in normal market circumstances, the Fund conduct quarterly repurchase offers of up to 5% of the Fund’s net assets, subject to approval by the Fund’s Board of Trustees (the “Board”). However, there can be no assurance that the Fund will conduct repurchase offers in any particular period and shareholders may be unable to tender shares for repurchase for an indefinite period of time. The Fund is not obligated to repurchase any shares and may choose to conduct a quarterly repurchase offer of less than 5% of the Fund’s net assets or not conduct a quarterly repurchase offer in any quarter. As a result, shares should be considered as having only limited liquidity and at times may be illiquid. Offers for repurchases of shares, if any, may be suspended, postponed or terminated by the Board under certain circumstances.

5. Fund shares will be sold only to persons or entities that are “accredited investors,” as defined in Section 501(a) of Regulation D under the Securities Act of 1933.

6. The Fund may, in its sole discretion, accept investments below these minimums.

7. “Blind pool risk” refers to the potential risks associated with investing in an investment vehicle without knowing the specific investments that will be made. Conversely, secondary investors purchase pre-existing assets and thus the “blind pool risk” is limited.

This material is neither an offer to sell nor a solicitation to purchase any security. Investors should carefully consider the investment objectives, risks, tax information, charges and expenses of the Apollo S3 Private Markets Fund (the “Fund”). This information and other important details about the Fund are contained in the prospectus, which can be obtained by visiting https://apollo.com/aspm. Please read the prospectus carefully before investing. Prospective investors should be aware that an investment in the Fund entails substantial risks, including but not limited to those listed below. Prospective investors should carefully read the Fund’s prospectus for additional risk factors in determining whether an investment in the Fund is suitable. Prior to investing, prospective investors should consult with their own tax and legal advisors.

Limited Operating History. The Fund is a newly organized closed-end management investment company registered under the Investment Company Act of 1940 with no operating history and is not designed to be a complete investment program.
Limited Liquidity. Investments in the Fund are illiquid and there are significant restrictions on transferring interests in the Fund. The Fund’s shares are not listed on any securities exchange and no secondary public market for the sale of the Fund’s interests exists, nor is one likely or expected to develop. In addition, interests will not be freely transferable.
There can be no assurance that the Fund will conduct repurchase offers in a particular period. Although the Board may, in its sole discretion, cause the Fund to offer to repurchase outstanding Shares at their NAV and the Adviser expects to generally recommend that, in normal market circumstances, the Fund conducts quarterly repurchase offers of up to 5% of the Fund’s net assets, subject to approval by the Board, there can be no assurance that the Fund will conduct repurchase offers in any particular period and Shareholders may be unable to tender Shares for repurchase for an indefinite period of time. The Fund is not obligated to repurchase any Shares and may choose to conduct a quarterly repurchase offer of less than 5% of the Fund’s net assets or not conduct a quarterly repurchase offer in any quarter. As a result, Shares should be considered as having only limited liquidity and at times may be illiquid. Offers for repurchases of Shares, if any, may be suspended, postponed or terminated by the Board under certain circumstances.
Potential Loss of Investment. No guarantee or representation is made that the Fund’s investment strategy will be successful nor do we guarantee any level of return or risk. An investment in the Fund could require a long-term commitment, with limited liquidity and the risk of loss of capital. Such an investment is speculative and involves a high degree of risk. Investors must have the financial ability, sophistication, experience and willingness to evaluate the merits and bear the risks of such an investment. Such an investment is not suitable for all potential investors. Investors could lose part or all of an investment, and the Fund could incur losses in markets where major indices are rising and falling. Only accredited investors can invest in the Fund. Results could be volatile. Accordingly, investors should understand that past performance is not indicative nor a guarantee of future results. All investments involve risk, including loss of capital.
Fees and Expenses. The Fund is subject to substantial charges for management and other fees regardless of whether the Fund has a positive return. Please refer to the Fund’s prospectus or other governing documents for a more complete description of risks and a comprehensive description of expenses to be charged to the Fund.
Distributions: Legal and regulatory requirements may limit the Fund’s ability to make distributions, which are made at the Fund board’s discretion. The Fund cannot guarantee that it will make distributions, and if the Fund makes distributions it may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, or return of capital, and the Fund has no limits on the amounts it may pay from such sources.
Risks of Private Market Strategies. The Fund’s investment portfolio will include secondaries, co-investments and primaries. The portfolio funds and special purpose vehicles that the Fund invests in will typically hold securities issued primarily by private companies. Operating results for private companies in a specified period may be difficult to determine. Such investments involve a high degree of business and financial risk that can result in substantial losses.
The Fund is subject to the risks associated with its Portfolio Funds’ underlying investments. The investments made by the portfolio funds will entail a high degree of risk and in most cases be highly illiquid and difficult to value. The Fund will not obtain or seek to obtain any control over the management of any portfolio company in which any portfolio fund may invest. The success of each investment made by a portfolio fund will largely depend on the ability and success of the management of the portfolio companies in addition to economic and market factors.

Volatile Markets. Difficult market or economic conditions could adversely affect the Fund’s performance. Market prices are difficult to predict and are influenced by many factors, including, but not limited to changes in interest rates, government intervention and changes in national and international political and economic events. The performance of the Fund is based on a number of assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change.
Reliance on Key Personnel. Apollo and/or its affiliates have total trading authority over the Fund and will be subject to various conflicts of interest. The success of the investment could depend in large part upon the skill and expertise of certain Apollo professionals. Such professionals could be subject to various conflicts of interest and will from time to time work on other projects or products for Apollo and or its affiliates. The death, disability or departure of certain individuals affiliated with Apollo may have a material effect on the Fund.
Valuation Risk. The net asset value of the Fund may be determined by its adviser or based on information reported from underlying portfolio companies. Certain portfolio assets could be illiquid and without a readily ascertainable market value. Valuations of portfolio companies could be difficult to verify.

Use of Leverage. The Fund expects to utilize leverage, which will magnify the potential for loss on amounts invested in the Fund.

This website must be read in conjunction with the Fund's prospectus in order to fully understand all the implications and risks of an investment in the Fund. This website is neither an offer to sell nor a solicitation of an offer to buy securities. Investments mentioned herein may not be suitable for prospective investors. An offering is made only by the prospectus, which must be made available to you prior to making a purchase of shares and is available at https://apollo.com/aspm. Prior to making an investment, investors should read the prospectus, including the “Risk Factors” section therein, which contain the risks and uncertainties that we believe are material to our business, operating results.

Certain information contained in this website constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words, or the negatives thereof. These may include financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, and statements regarding future performance. Such forward‐looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. Apollo believes these factors include but are not limited to those described under the section entitled “Risk Factors”, which will be further described in the fund’s prospectus when available, and any such updated factors included in the fund’s periodic filings with the Securities and Exchange Commission (the “SEC”), which will be accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the fund’s prospectus and other filings. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Alternative investments often are speculative, typically have higher fees than traditional investments, often include a high degree of risk and are suitable only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase volatility and risk of loss.

Opinions expressed herein reflect the current opinions of Apollo as of the date appearing in the materials only and are based on Apollo’s opinions of the current market environment, which is subject to change. Certain information contained in the materials discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice. This presentation is not complete and the information contained herein may change at any time without notice.

Apollo Global Securities, LLC ("AGS") is a subsidiary of Apollo through which Apollo conducts its capital markets business and certain of its fund marketing and distribution, and is registered with the SEC and a member of FINRA. AGS is a broker-dealer whose purpose is to distribute Apollo managed or affiliated products. AGS provides services to its Apollo affiliates, not to investors in its funds, strategies or other products. AGS does not make any recommendation regarding, and will not monitor, any investment. As such, when AGS presents an investment strategy or product to an investor, AGS does not collect the information necessary to determine—and AGS does not engage in a determination regarding—whether an investment in the strategy or product is in the best interests of, or is suitable for, the investor. Investors should exercise their own judgment and/or consult with a professional advisor to determine whether it is advisable to invest in any Apollo strategy or product.

AGS and Griffin Capital Securities, LLC (“GCS”), Members of FINRA and SIPC, are subsidiaries of Apollo Global Management, Inc. AGS conducts Apollo’s capital markets business and certain of its fund marketing and distribution and GCS is a wholesale marketing agent for Apollo sponsored products.

FINRA BrokerCheck

NOT A DEPOSIT | MAY LOSE VALUE | NO BANK GUARANTEE | NOT INSURED BY THE FDIC, NCUA OR ANY OTHER GOVERNMENT AGENCY

Featured Content