Apollo’s Creed: We Will Raise Next Mega-Fund Later in ’12

We finally have some word on when Apollo Global Management will be fundraising again.

The buyout shop headed by Leon Black expects to be out in the market later this year for its latest mega fund, according to Marc Spilker, Apollo’s president. Spilker spoke Thursday on an earnings call discussing Apollo’s second quarter results.

Analysts on the call noted that Apollo’s fund VII, which raised $14.7 billion in 2008, was nearly fully invested. “It’s reasonable to expect that later this year we will launch Fund VIII,” Spilker said in response to questions. “We’re getting much closer.”

Total invested capital for fund VII was $13.1 billion, according to Apollo’s second quarter release. The fund, as of June 30, has produced a gross IRR of 33% and a net IRR of 23%.

In April, peHUB reported that Apollo would be out marketing soon for Fund VIII. However, it’s still unclear how much the New York buyout shop will be looking to raise. Apollo has the flexibility to go between buyouts and distressed investing. With fund VII, the PE firm focused on distressed transactions that have done well, a source has told peHUB.

Earlier Thursday, Reuters reported that Apollo quarterly earnings plunged 66 percent as the value of its portfolio was dragged down by turbulent markets.

Photo courtesy of Shutterstock

DON'T MISS IT! After two successful conferences on the East Coast, we’re bringing our LPs and fund managers to San Francisco for the first annual Emerging Manager Connect West on May 11. Don’t miss out on insightful panels and great networking! CLICK HERE for details.

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