Apollo’s Affiliates to Acquire up to 50% Stake in MaxCap

Clients managed by the affiliates of alternative investment management services firm Apollo Global Management LLC (APO) have signed an agreement to acquire up to a 50% stake in MaxCap Group, an Australia-based commercial real estate debt and investment company.

Headquartered in New York, Apollo has investments in equity, credit and real assets. The company’s shares closed 1% lower at $61.28 on Wednesday. (See Apollo stock chart on TipRanks)

After the completion of the acquisition, co-founders of MaxCap, Brae Sokolski and Wayne Lasky, will continue to head the company and retain the rest of the shares. As of June 30, MaxCap’s funds under management and advice surpassed A$4 billion.

The Co-President at Apollo, Scott Kleinman, said, “This is an exciting opportunity to expand our origination capabilities, support the strong management team and together leverage our highly complementary platforms and expertise.”

The Senior Partner of Real Estate at Apollo, Philip Mintz, said, “We’re excited to provide capital and strategic support to help accelerate their business and increase our activity in Australia. Together we see significant opportunity ahead as the non-bank real estate credit market continues to grow in the region.”

Last month, Jefferies (JEF) analyst Gerald O’Hara maintained a Hold rating on the stock with a price target of $61 (downside potential of 0.5%). The analyst expects Apollo to report earnings per share (EPS) of $0 in the third quarter.

Overall, the stock has a Moderate Buy consensus rating based on 5 Buys and 3 Holds. The average Apollo Global Management price target of $64.86 implies upside potential of 5.8%. Shares of the company have gained 35.2% over the past year.

Related News:
Walmart Issues Inaugural $2 Billion Green Bonds
Square Introduces Square Register in Canada; Shares Fall 4.2%
Paysafe Enhances Partnership with Betfred USA; Street Says Buy