US asset manager Apollo launches sustainable investing platform that may attract $100bn

New York company aims to invest $50bn in clean energy and climate capital over the next five years

Apollo has put more than $19 billion in energy transition and sustainability-related investments in the past five years. AFP

Apollo Global Management, one of the world’s largest alternative investment managers, launched a sustainable investing platform to boost financing and investment in the energy transition and decarbonisation of the industry.

The company aims to invest $50 billion in clean energy and climate capital over the next five years. It predicts that figure could rise to more than $100bn in these sectors by the end of this decade.

“We see an opportunity to play a critical role in driving a more sustainable future,” Apollo’s co-president Scott Kleinman said.

“We recognise that fundamental change does not happen overnight and advancing the transition will require deep expertise, partnership and long-term, flexible capital,” Mr Kleinman said.

Apollo’s sustainable investing platform will span the firm’s equity, hybrid and yield businesses.

With approximately $4.5 trillion annually in investments needed to achieve global net zero by 2050, Apollo aims to be a capital partner to companies and communities across the world, it said.

“Investing in the energy transition and decarbonisation of industry continues to be a priority for the firm,” Olivia Wassenaar, head of sustainable investing at Apollo, said.

“We see significant opportunities across the sustainability spectrum to provide attractive, diversified returns to our investors while driving a once-in-a-generation need to create real, positive change across sectors.”

Apollo has put more than $19bn into energy transition and sustainability-related investments in the past five years.

It supports companies and projects across clean energy and infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as technologies to enable decarbonisation.

As of December 31, the company had nearly $498bn of assets under management.

“We believe our new platform strategy demonstrates Apollo’s all-in commitment to a cohesive yet customisable approach to create value for all of our stakeholders while accelerating climate goals,” the company’s chief sustainability officer Dave Stangis said.

This month, the New York-based investment firm agreed to invest $1.4bn through Apollo-managed funds and clients in Abu Dhabi developer Aldar Properties. The deal represents one of the largest foreign direct investments in Abu Dhabi’s private sector.

As part of the deal, Apollo will take a direct minority stake in Aldar Investment Properties.

The transaction is expected to close by the end of the first quarter of this year.

This week, Apollo also expanded its global partnership with Abu Dhabi’s strategic investment arm Mubadala Investment Company to further build capabilities and meet increasing market demand for multibillion-dollar equity and debt solutions.

In 2020, the company also entered into a long-term strategic investment with Adnoc and a group of institutional investors for an underlying real estate portfolio valued at $5.5bn.