Apollo seeks $2.1 billion for Athene expansion in Europe
April 6, 2017 by Business Record Staff
Apollo Global Management LLC is seeking 2 billion euros ($2.1 billion) to help annuity seller Athene Holding Ltd. expand in Europe through takeovers, according to a person familiar with the plan, Bloomberg reported.
The private equity firm is approaching institutional investors and will also contribute its own funds to the venture as will Bermuda-based Athene Holding, said the person, who asked not to be identified discussing a private plan. Athene Holding is the parent company of West Des Moines-based annuity company Athene USA.
Athene CEO Jim Belardi is seeking to extend growth after building the insurer into one of the largest sellers of fixed annuities in the United States and taking the company public in December, according to Bloomberg. The CEO’s strategy is to accumulate assets at favorable prices through retirement contracts and then reinvest in holdings such as credit funds and middle-market lending to generate better returns than rivals who rely more on lower-yielding bonds.
Athene Holding’s European subsidiary is based in Wiesbaden, Germany, and manages life insurance products previously sold to the German market. The company specializes in efficient management of insurance portfolios in the fields of life, disability and retirement, according to its website.
Athene disclosed in a regulatory filing in March that it planned to expand its investment in the European market, citing a larger opportunity than previously realized over the next several years.
“In order to fully capitalize on this opportunity, we would need to commit capital to the European market at a level in excess of our targeted investment size, creating the need for third-party capital to support growth,” the company said.
Athene’s investment portfolio was valued at more than $70 billion at the end of last year. Apollo counts the insurer as a top holding and collects fees for managing its assets.
On Monday, Apollo Management Holdings Group sold more than 12.5 million shares of the company’s stock at an average price of $48.50, for a total transaction of $607,832,264, according to a filing with the Securities and Exchange Commission.
