Funds Managed by Apollo Global Management to Acquire Approximately $1 Billion Portfolio of Equity Investments from GE Capital...
October 08 2018 - 8:00AM
Business Wire
Funds managed by affiliates (the “Apollo Funds”) of Apollo
Global Management, LLC (together with its consolidated
subsidiaries, “Apollo”) (NYSE: APO) and GE Capital (NYSE: GE) today
announced they have entered into a definitive agreement for the
Apollo Funds to acquire an approximately $1 billion portfolio,
including assumed obligations, of predominantly equity investments
in energy assets (the “Equity Portfolio”) from GE Capital’s Energy
Financial Services unit. The Equity Portfolio comprises
approximately 20 investments in renewable energy, contracted
natural gas fired generation and midstream energy infrastructure
assets, primarily in the US. In connection with this transaction,
the parties will seek to form an ongoing relationship with respect
to select future new energy infrastructure investments. Financial
details of the transaction are not disclosed.
Alec Burger, President of GE Capital, said, “The sale of this
Equity Portfolio reflects ongoing progress executing GE Capital’s
strategy, and enables us to continue to deliver on our commitments
and provide value to GE. The Apollo Funds are an ideal buyer for
these assets with a disciplined investment approach and experience
managing complex alternative investments.”
GE Energy Financial Services continues to use its expertise to
invest in and structure third party financial solutions for GE’s
power and renewable energy customers, globally.
“We believe this transaction provides us with a unique
opportunity to acquire a diversified portfolio of high-quality
energy infrastructure assets with attractive risk-adjusted return
profiles,” said Geoffrey Strong, Senior Partner at Apollo. “In
addition, we look forward to working with GE’s team on future
energy infrastructure investment opportunities.”
The completion of the acquisition is subject to customary
conditions and is expected to close in the fourth quarter of 2018.
Bank of America Merrill Lynch and PJT Partners provided financial
advice, and Gibson Dunn & Crutcher and Latham & Watkins,
provided legal advice to GE Capital. Citigroup Global Markets Inc.
served as lead financial advisor and RBC Capital Markets and
Goldman Sachs also served as financial advisors to Apollo. RBC
Capital Markets, Goldman Sachs and Bank of Montreal provided
financing to Apollo for the transaction. Paul, Weiss, Rifkind,
Wharton & Garrison LLP, Milbank, Tweed, Hadley & McCloy
LLP, and Vinson & Elkins LLP served as Apollo’s legal
advisors.
About Apollo Global Management
Apollo is a leading global alternative investment manager with
offices in New York, Los Angeles, Houston, Bethesda, London,
Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong
and Shanghai. Apollo had assets under management of approximately
$270 billion as of June 30, 2018 in private equity, credit and real
assets funds invested across a core group of nine industries where
Apollo has considerable knowledge and resources. For more
information about Apollo, please visit www.agm.com.
About GE
GE (NYSE:GE) drives the world forward by tackling its biggest
challenges: Energy, health, transportation—the essentials of modern
life. By combining world-class engineering with software and
analytics, GE helps the world work more efficiently, reliably, and
safely. For more than 125 years, GE has invented the future of
industry, and today it leads new paradigms in additive
manufacturing, materials science, and data analytics. GE people are
global, diverse and dedicated, operating with the highest integrity
and passion to fulfill GE’s mission and deliver for our customers.
www.ge.com
About GE Energy Financial Services
A strategic GE Capital business, GE Energy Financial Services is
a global energy investor with 35+ years managing assets through
multiple energy cycles. Drawing on its technical know-how,
financial strength and strong risk management, GE Energy Financial
Services invests in and provide capital solutions for long-lived
and capital-intensive projects and companies that help meet the
world’s energy needs. It is headquartered in Connecticut with
regional hubs in London, Houston, Hong Kong and Nairobi. For more
information, visit www.geenergyfinancialservices.com and follow us
on Twitter @GEEnergyFinServ.
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version on businesswire.com: https://www.businesswire.com/news/home/20181008005253/en/
Apollo Global ManagementFor investors please contact:Gary
M. SteinHead of Corporate
Communications212-822-0467gstein@apollolp.comorFor media
inquiries please contact:Charles ZehrenRubenstein Associates,
Inc.212-843-8590czehren@rubenstein.comorGE CapitalJaclyn
CochraneGE Energy Financial Services+1 203 961
2934jaclyn.cochrane@ge.com
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