PM Alpha ODD has conducted a full operational due diligence review of Apollo Global Management Inc (Apollo), a high-growth, global alternative asset manager with a focus on yield, hybrid, and equity investing strategies. The review also included an evaluation of the Apollo European Principal Finance Fund IV (the "Fund"), which is managed by Apollo.
The ODD process evaluated the operations and non-investment aspects of the Fund, including a desk-side based review of all relevant documentation as well as an onsite review where relevant senior individuals of Apollo were present. PM Alpha ODD noted that Apollo overall highlighted no material issues of concern and received a rating of ‘no material issues of concern’ across all 11 categories.
Apollo has a long history and a good corporate governance structure, with correct committees, staff numbers, and segregation of duties. The company generates its revenue primarily from Credit Fee-Related Revenue, Private Equity Fee-Related Revenue, and Real Assets Fee-Related Revenue. As of December 31, 2022, Apollo's Total AUM with Future Management Fee Potential was $38.00 billion, representing a growth of 44.49% compared to the previous year.
Apollo has a strong compliance culture and has put effective practices in place, despite recent media headlines. The company also has a robust IT and cyber security practice, with real-time backup and external phishing and security testing.
Overall, PM Alpha ODD's due diligence review of Apollo and the Fund found no material issues of concern, indicating that Apollo has a strong operational foundation and is well-positioned to continue its growth as a global alternative asset manager.