Apollo Global Management Inc., (NYSE: APO), a global alternative asset management company, has registered a $5 billion non-traded NAV REIT offering, Apollo Realty Income Solutions Inc., with the U.S. Securities and Exchange Commission. The company will seek to “invest primarily in a portfolio of diversified institutional quality, income-oriented commercial real estate primarily in the United States.”
The maximum primary offering is $4 billion, with an additional $1 billion in shares available via the company’s distribution reinvestment plan.
According to the company’s S-11 filing with the SEC, Apollo Realty will offer nine classes of common stock to the public, six of which will be offered to all investors in the offering (Class S shares, Class D shares, Class I shares, Class F-S shares, Class F-D shares, and Class F-I shares, which the company refers to as “founder shares”) and three of which will be offered through financial intermediaries to certain investors in the offering (Class A-I shares, Class A-II shares and Class A-III shares, which the company refers to as “anchor shares”). Anchor shares are only available through financial intermediaries identified by the company under specific conditions.
The share classes have different upfront selling commissions ranging from zero percent to 3 percent of share purchase price, upfront dealer manager fees ranging from zero percent to 0.5 percent of share purchase price, and stockholder servicing fees that range from zero percent to 0.85 percent of net asset value. In total, Apollo Realty Income Solutions estimates maximum underwriting fees and expenses totaling 10 percent of the maximum $4 billion primary offering.
In May 2022, Apollo completed the acquisition of the US interval fund asset management business of Griffin Capital, which followed the March 2022 acquisition of Griffin’s distribution business, through which Apollo added approximately 60 client-facing distribution professionals to its Global Wealth business.
As of March 31, 2022, Apollo had $512 billion of assets under management.