Scott Kleinman Apollo co-president company provided

Apollo Global Management is planning to launch a private equity energy transition fund later this year – the latest in its $100 billion climate investment plan by 2030. The firm is also raising a private credit fund, co-president Scott Kleinman said at a Q1 2022 earnings call.

Earlier this year, Apollo announced a target of deploying $100 billion into climate by 2030, of which $50 billion would be invested over the next five years. These investment plans are “a cross-platform endeavour”, Kleinman said in the earnings call today: capital will be raised through multiple vehicles across Apollo’s private equity, yield, hybrid, infrastructure and natural resources businesses.

“We are planning on raising dedicated capital vehicles. We are in the process of marketing a climate finance fund and expect to launch an energy transition equity vehicle later this year,” Kleinman said in the earnings call.

The team behind this initiative is headed by Olivia Wassenaar, co-lead of Apollo’s private equity resources strategy, and overseen by Apollo’s chief sustainability officer, Dave Stangis. Wassenaar’s team will also work with the firm’s private credit business to provide decarbonisation financing for companies seeking capital to reduce their carbon footprints, an Apollo spokesperson told New Private Markets in February.

On the $50 billion and $100 billion investment targets, Kleinman said: “While these figures may seem large, it’s only really a drop in the bucket. By comparison we expect financing the decarbonisation of industry to require approximately $5 trillion per year in capital investment over the next 20 years.”

Apollo is also in market with the $1 billion-target Impact Mission Fund, which pursues social and environmental impact, and is targeting $25 billion for its 10th flagship fund, for which it plans to reduce the carbon emissions of portfolio companies by 15 percent of its investment period where it has a controlling stake.

Apollo declined to comment further when contacted for this story.