Investment advisory services provider American Beacon Advisors Inc. and alternative investment manager Apollo Global Management LLC (NYSE: APO), have partnered to launch the American Beacon Apollo Total Return Fund, an interval fund and cross-platform credit vehicle. The fund’s shares are available under the ticker symbol ATRYX.
American Beacon will serve as the fund’s investment manager and administrator, and Apollo subsidiary Apollo Credit Management will serve as the subadvisor. The fund plans to invest across the credit landscape to areas in which Apollo believes produce the most attractive risk-adjusted returns, including U.S. corporate credit, global corporate credit, structured credit, and real estate credit.
“The fund complements our comprehensive roster of strategies and provides investors with the potential to generate attractive risk-adjusted returns by leveraging the capabilities of one of the leading credit platforms in the world, said Gene Needles, American Beacon’s chairman and chief executive officer. “Of significance, this fund may allow Main Street investors to seek to capitalize on some of the sharpest thinking Wall Street has to offer.”
The offering is comprised of $250 million in Class Y shares priced at $10.00 each with a minimum initial investment of $100,000 per account.
The companies noted that the fund was “developed in response to investors’ increasing appetite for strategies that have the flexibility to invest in multiple sectors and asset classes with the goal of delivering an attractive return and risk profile with lower correlation to traditional investments.”
“Most funds are single-strategy vehicles, whereas the American Beacon Apollo Total Return Fund has a comprehensive strategy that allows investors to access different aspects of Apollo’s broad credit expertise,” said James Zelter, Apollo’s co-president and chief investment officer of Apollo’s credit business.
American Beacon Advisors, an investment affiliate of Resolute Investment Managers Inc., had $58.1 billion in assets under management as of June 30, 2018.
Apollo had assets under management of approximately $269 billion in credit, private equity, and real assets funds invested across a group of nine industries, as of June 30, 2018.