Apollo Global Management is preparing to launch the eleventh iteration of its flagship private equity fund in early 2025, targeting up to $25B in capital, Bloomberg reported December 9, citing “people with knowledge of the matter.”
Apollo Investment Fund X closed in August 2023 with approximately $20B in commitments, about half of which it has thus far deployed, according to Bloomberg. Such a substantial raise on Fund XI would go some way toward Apollo achieving goals it outlined in its last investor day of doubling the private equity business AUM to $270M and $1.5T for the firm overall in the next five years.
“Private equity continues to be an important driver of our business, not just in the financial sense but in all the ways private equity DNA permeates the broader Apollo ecosystem,” Matt Nord, co-head of equity said in the investor day presentation, noting that Fund IX and Fund X have “massively outperformed.” As of early October, when the investor day took place, Nord said Fund IX had an IRR of 29% and has returned $14B of capital, while Fund X has a 47% IRR.
This leaves Apollo “really well positioned for a very successful Fund XI fundraise,” he said, adding that “based upon our performance and all the positive receptivity we’ve received, we’d expect Fund XI to be larger than Fund X.”
