Funds Managed by Apollo Global Management to Acquire Approximately $1 Billion Portfolio of Equity Investments from GE Capital’s Energy Financial Services
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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