By Nick Hedley
New York-listed alternative asset manager Apollo has partnered with Australian superannuation fund Hostplus on an Asia Pacific Credit Strategy.
The strategy launches with US$1.25 billion in assets, with a $500 million anchor commitment from Hostplus.
It will capitalize on growing demand for private credit across the Asia Pacific region, both groups said in a statement. The strategy will target “high-quality opportunities across the yield spectrum,” focusing primarily on Australia, India, Singapore, South Korea and Hong Kong.
Apollo Co-President Jim Zelter said, “This strategy is a natural extension of our global credit capabilities and reflects growing demand in the region for flexible, expedient capital solutions from non-bank lenders. We are pleased to launch Asia Pacific Credit in alignment with our long-term partners at Hostplus, who share in our disciplined investment philosophy.”
Hostplus CEO David Elia said the launch is part of the fund’s broader strategy to further diversify its investment portfolio.
“Credit plays an important role in our strategic asset allocation to ensure we spread investment risk and help stabilize our investment portfolio, smoothing the ups and downs of investment market cycles,” Elia said.
Matt Michelini, Apollo’s Asia Pacific head, said the firm is making progress in building its team and capabilities in the region.
As of March 31, Apollo had $513 billion of assets under management. Hostplus has 1.5 million members and $89 billion in funds under management.