Global asset management firm Apollo (NYSE: APO) has completed the first close of its previously announced transaction with Griffin Capital, a privately-held alternative investment manager headquartered in Los Angeles, California with more than $5 billion in assets under management.
Griffin Capital’s wealth distribution business is now part of Apollo Global Wealth, and the company expects to hold a final close to add Griffin’s individual-investor focused products and associated asset management team in the second quarter of 2022.
Since 1995, Griffin Capital has sponsored or co-sponsored a number of alternative investment products including non-traded real estate investment trusts, interval funds, and tax advantaged strategies, including Delaware statutory trusts and opportunity zone funds.
With the close, Apollo added approximately 60 client-facing distribution professionals that are currently established in the independent channel, which Apollo said is a “complement” to its focus on private banks, wirehouses, institutional registered investment advisors, and family offices. Marketing, technology and operational infrastructure were also transitioned to Apollo.
Griffin’s Cory Calvert was appointed head of independent broker-dealer for US Global Wealth.
“This is an important milestone in the buildout of our Global Wealth business and in addition to this acquisition, our trajectory across hiring, capital raising and new product development has been remarkable,” said Stephanie Drescher, chief client and product development officer of Apollo. “We look forward to finalizing the transaction and working together to leverage Griffin’s expertise in the individual investor and advisor market to offer a broader portfolio of solutions.”
As part of its continued Global Wealth expansion, Apollo also recently hired Dan Flynn as head of institutional RIA and Joe Moran as a managing director for institutional RIA.
Apollo has also been building its pipeline of alternative products for individual investors. In January 2022, it launched a non-traded perpetual-life business development company, Apollo Debt Solutions BDC, which has raised more than $1 billion of equity.
Apollo shares closed at $64.93 on Wednesday, up $2.53 or 4.05 percent from the previous close. As of December 31, 2021, Apollo had approximately $498 billion of assets under management.
Completion of the Griffin acquisition will require approval of stockholders of the Griffin Institutional Access Real Estate Fund and the Griffin Institutional Access Credit Fund, both closed-end interval funds.
Financial terms were not disclosed.