In brief: Apollo unveils $4bn transition strategy

The strategy will invest in both debt and equity, and 'support corporates in their transition to clean energy'.

Apollo Global Management has announced an energy transition strategy with $4 billion ready to deploy. The capital has come from “Apollo affiliates and strategic partners” and will be invested “to support corporates in their transition to clean energy”, the firm said in a press release on Wednesday. Here is what we know:

  • Apollo Clean Transition Capital – or ACT Capital – will invest in “a diversified global portfolio of yield and hybrid investments”.
  • The make up of the inital $4 billion has not been made public, but it includes “equity commitments and anticipated pro forma leverage”, the firm said.
  • The global energy transition is a challenge that needs attacking on multiple fronts. Much of private markets’ climate fundraising activity has focused on either scaling the technology to drive the transition or on renewable power generation. Finance for existing businesses that need to decarbonise has been relatively underexplored and this is where Apollo’s ACT Capital is seeking to play.
  • Apollo trailed the launch of this strategy earlier this year. It will contribute to the $50 billion it has said it will invest in clean energy and climate capital by 2027. It made this pledge last year and says it had deployed $6 billion towards this target by the end of 2022.