Apollo has announced it will buy the US wealth distribution and asset management businesses of Griffin Capital in a move expand its platform for high-net-worth individuals.
The asset management giant said the acquisition will be financed with Apollo stock, but declined to disclose the sale price.
Apollo CEO Marc Rowan said, “The democratization of finance brings tremendous opportunity for individual investors to access alternatives. With the acquisition of Griffin, we will significantly advance our US wealth market growth plans.
“As one of the first firms to bring alternative strategies to the individual investor and advisor market in the US, Griffin has built trusted relationships over 20-plus years, and in combination with Apollo can offer the market a broader set of solutions.”
The acquisition is a significant step in building Apollo’s Global Wealth Management Solutions business, which is focused on the development and distribution of alternatives to individual investors and their wealth advisors.
Established in 1995, Griffin has a long track record of providing alternative investment solutions to advisors across the US with a focus on well-established independent channels. Apollo intends to integrate its 60-person team into its Global Wealth business, rapidly scaling the initiative.
The acquisition also adds valuable technology, infrastructure and hundreds of distribution agreements to the Global Wealth platform.
Griffin’s asset management business includes a strong investment team and over $5 billion of AUM in individual investor-focused products. Griffin, a pioneer in bringing alternatives to individual investors, was one of the earliest firms to launch the interval fund structure.
“The world of alternative investments is vast and competitive, and partnering with a world-class asset manager like Apollo is a logical step in the growth and evolution of Griffin,” commented Kevin Shields, Chairman and CEO of Griffin Capital.
“Apollo is committed to building its Global Wealth business, and they have the resources to foster growth of our existing interval fund business and bring creative, new alternative solutions to individual investors. I could not be more thrilled that Apollo recognizes the talent of the Griffin team, across distribution, asset management and supporting functions,” continued Shields.
Stephanie Drescher, Chief Client and Product Development Officer of Apollo, said, “This transaction turbocharges our efforts in the US wealth market by integrating a team that has been singularly focused on serving individuals and advisors through alternative investment strategies. Griffin has strong, longstanding relationships in the US advisor market, and we are excited to welcome them to Apollo. This transaction reflects our strong commitment to sharing the success of Apollo’s platform with an increasingly broad base of individuals and their advisors.”
“We have diligently built Griffin’s business over many years and now take a significant step forward in joining Apollo. As investors, we will integrate with one of the world’s leading alternative platforms, and my distribution colleagues will have a larger and growing set of strategies to help solve their clients’ needs,” said Randy Anderson, Ph.D. and CEO of Griffin Capital Asset Management, who will join Apollo’s Real Estate team as part of the acquisition.
The transaction is Apollo’s largest investment in Global Wealth to-date and follows significant new hires at the firm, including Howard Nifoussi joining as US Head of Global Wealth, focused on private bank and wirehouse channels, and Jason Singer joining as Global Head of Product Development and Innovation. Most recently, Apollo hired Edward Moon who will join the firm as Head of Asia Pacific for Global Wealth in Hong Kong. The firm has been building its pipeline of alternative solutions for individual investors. Last month, Apollo launched the Apollo Debt Solutions BDC with a global bank platform and expects to continue the launch with multiple banks and independent channel partners into next year.
Baker McKenzie is serving as legal counsel and Berkshire Global Advisors as exclusive financial advisor to Griffin in the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel and BofA Securities and Morgan Stanley & Co. LLC as financial advisors to Apollo.