Apollo Global Management and Motive Partners have formed a strategic and financial partnership. According to terms of the partnership, Apollo will acquire up to a 24.9 percent minority stake in Motive’s management company and Apollo and its affiliates will become limited partners in Motive managed vehicles. Gibson, Dunn & Crutcher LLP is advising Motive Partners in the strategic and financial partnership with Apollo.
Apollo Global Management, Inc. (NYSE: APO) (“Apollo”) and Motive Partners (“Motive”), a specialist private equity firm focused on financial technology investments, today announced a strategic and financial partnership to capitalize on significant technological transformation and innovation in financial services. The partnership aims to enhance investment opportunities for clients and accelerate growth of both platforms. Terms of the transaction were not disclosed.
As part of the strategic partnership, Apollo will acquire up to a 24.9% minority stake in Motive’s management company and Apollo and its affiliates will become limited partners in Motive managed vehicles. These commitments enhance Motive’s ability to execute on its differentiated investment strategy within financial technology, with an increased ability to transact on its proprietary pipeline.
For Apollo, the partnership will accelerate innovation and growth, with Motive serving as a strategic innovation partner to Apollo, its affiliates, and its funds’ portfolio companies. Motive Create, the firm’s in-house innovation team, will work with Apollo in a number of focus areas, including technology innovation across its platform, new product development and distribution, and investment origination.
Marc Rowan, Chief Executive Officer of Apollo, commented: “There is a technology-driven transformation underway in financial services and Apollo is well positioned to occupy the single best position in this evolving ecosystem. Rob and the Motive teams’ exceptional financial technology expertise and network will significantly enhance our efforts to expand and improve technology capabilities throughout our entire platform–broadening distribution across new and existing channels and developing new product offerings for our asset management and retirement services businesses. Innovation is core to Apollo’s growth strategy and this partnership underscores our goal to be at the forefront of technological innovation in our industry.”
Rob Heyvaert, Founder & Managing Partner at Motive Partners, commented: “Since our inception, we have prided ourselves on having an unparalleled level of expertise, knowledge and access in the financial technology ecosystem. As financial technology begins to intersect with every sector on the planet, this is an opportune time to develop a partnership with a group that shares our ambitions and can support our efforts to capitalize on the significant market opportunity before us. It is a privilege to be partnering with Marc, Jim, Scott, Gary and the Apollo team, for whom I have developed great respect. The evolution of Motive Create is an immediate demonstration of our collective understanding and commitment to building value in financial technology via the execution of operating and innovating expertise.”
Apollo’s partnership with Motive Create will leverage the group’s innovation expertise and technology capabilities in financial services to help the firms capitalize on what Motive estimates to be a nearly $10 trillion (source: Motive Partners) financial technology market opportunity over the coming decade. Both firms believe that the financial services industry will continue to undergo significant transformation over the next decade, characterized by purpose, inclusivity, digital efficiency, and connectivity. The technology and institutional shifts over the previous decade, and catalyzed over the past year, have created the conditions for a fundamental rethink of how and where core functions of financial technology are delivered. Other industries are increasingly embedding financial technology and services into their product offerings, creating an explosion of opportunity for financial technology players and investors and setting the stage for a new class of platform giants to emerge. The strategic partnership between Apollo and Motive is positioned to accelerate the integration of these technologies to collectively address this significant market opportunity together and enhance their respective portfolios.
Beyond the core components of the strategic partnership, there will be no changes in the management, strategy, investment process, or day-to-day operations of Motive or any Motive managed vehicles, including Motive Capital Corp (NYSE: MOTV).
Apollo is a high-growth, global alternative asset manager. We seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through our investment activity across our fully integrated platform, we serve the retirement income and financial return needs of our clients, and we offer innovative capital solutions to businesses. Our patient, creative, knowledgeable approach to investing aligns our clients, businesses we invest in, our employees and the communities we impact, to expand opportunity and achieve positive outcomes. As of March 31, 2021, Apollo had approximately $461 billion of assets under management. To learn more, please visit www.apollo.com.
About Motive Partners
Motive Partners is a specialist private equity firm with offices in New York City and London, focusing on growth equity and buyout investments in software and information services companies based in North America and Europe and serving five primary subsectors: Banking & Payments, Capital Markets, Data & Analytics, Investment Management and Insurance. Motive Partners brings differentiated expertise, connectivity and capabilities to create long-term value in financial technology companies.
More information on Motive Partners can be found at www.motivepartners.com.