Apollo-backed Athene Holding to acquire Foundation Home Loans

Athene Holding, which is backed by Apollo, has agreed to acquire Foundation Home Loans, a UK-based mortgage lender, from Fortress Investment Group.

Athene Holding, which is backed by Apollo, has agreed to acquire Foundation Home Loans, a UK-based mortgage lender, from Fortress Investment Group. No financial terms were disclosed.

PRESS RELEASE

HAMILTON, Bermuda, July 15, 2021 /PRNewswire/ — Athene Holding Ltd. (NYSE: ATH) (“Athene”), an industry-leading financial services company focused on retirement savings solutions, today announced that it has entered into a definitive agreement to acquire Foundation Home Loans (“FHL”), a specialist UK mortgage lender from funds managed by affiliates of Fortress Investment Group LLC. As of June 2021, FHL had a £3 billion portfolio of specialist buy-to-let and owner-occupied mortgages on its balance sheet. The closing of the acquisition remains subject to the satisfaction of customary conditions, including consent by the Financial Conduct Authority.

The investment in FHL will be managed by the team at Apollo Global Management, Inc. (NYSE: APO) (“Apollo”), Athene’s strategic asset management partner, and together Apollo and Athene expect that FHL will continue to be a leader in originating high-quality residential mortgage loans, providing Athene with attractive investment opportunities in high-quality yield assets.
Jim Belardi, Chairman and Chief Executive Officer of Athene, said,

“This transaction continues our longstanding strategy of working with Apollo to identify and invest in attractive businesses which add direct origination asset sourcing capabilities to our alpha-generating investment portfolio. We believe our investment will help FHL achieve its full potential, while being a complementary addition to our expanding asset sourcing capabilities.”

Hans Geberbauer, Chief Executive Officer of Foundation Home Loans, commented: “We are delighted to partner with Athene and Apollo for the next phase of growth in the UK specialist lending market. Their expertise and funding capacity will greatly enhance our position in the market.”

“Apollo has developed deep expertise in the residential loan market and we are excited to partner with FHL and its management team to help scale FHL’s platform, further positioning it as a leading originator within the UK buy-to-let market,” said Kevin Crowe, Partner of Apollo. Christopher Hojlo, Partner of Apollo, added, “We expect that FHL will contribute high-quality assets to Athene’s residential mortgage portfolio of loans and structured securities, which exceeded $13 billion of net invested assets as of March 31, 2021 and exhibits a strong yield profile that is indicative of the alpha generation the asset class can offer.”

About Athene
Athene, through its subsidiaries, is a leading retirement services company with total assets of $205.7 billion as of March 31, 2021 and operations in the United States, Bermuda, and Canada. Athene specializes in helping its customers achieve financial security and is a solutions provider to institutions. Founded in 2009, Athene is Driven to Do More for our policyholders, business partners, shareholders, and the communities in which we work and live. For more information, please visit www.athene.com.