Hybrid Value
Our Approach
Apollo's Hybrid Value business provides flexible, creative and partnership-driven capital solutions to help companies and shareholders achieve their goals. Hybrid Value works with entrepreneurs, management teams and private equity sponsors to seek to deliver debt solutions and equity capital in all market environments.
At-A-Glance
$12.9B
Assets Under Management
35+
Investment Professionals
As of March 31, 2024
Financing Stronger Businesses
Our Hybrid team works in partnership with companies to provide innovative and responsive debt and equity solutions to help their businesses grow.
Creativity & Flexibility
We are cycle-agnostic, which gives us the ability to deploy capital for both offensive and defensive situations.
Full Platform Approach
Hybrid brings together the industry capabilities and operational expertise of the entire Apollo platform.
Where Hybrid Value Sits
Apollo’s Hybrid Value business aims to provide innovative, flexible capital solutions into underserved segments of the market between traditional debt and equity where founders and entrepreneurs seek to transform their businesses without relinquishing control.
Credit
0-50%
LTV Range
- Often more liquid and shorter holds
- Diversified portfolios
- Non-control, thematic or trading-oriented, often dislocation-driven
Hybrid Value
50-80%
LTV Range
- Average 3–5 year holds
- Concentrated portfolio
- Typically non-control, flexible, value-add solutions provider across the cycle
Private Equity
80-100%
LTV Range
- Average 5–7+ year holds
- Concentrated portfolio
- Focus on control, with a hands-on approach to value creation
“Our highly experienced, global team and our close connectivity to groups around Apollo are our biggest strengths. We pride ourselves on striving to deliver creative, all-weather strategic partnership capital.”
Rob Ruberton
Co-Head of Hybrid Value
“Creativity and collaboration are core to everything we do. We work with founders, management teams and sponsors to develop structured solutions that set their businesses up for success and we leverage the full Apollo platform to try and provide them with the resources they need.”
Jason Scheir
Co-Head of Hybrid Value
Case Study
DCLI: Structured Equity Solution with Downside Protection
Direct ChassisLink (DCLI) operates an extensive network of over 230,000 intermodal chassis across 450 locations, which are used to transport marine and domestic shipping containers on the road between ports, railroads, and container yards. DCLI is the top player in the U.S. marine and domestic chassis markets.
In April 2019, HVF and other Apollo-managed funds acquired a 78% structured equity stake in DCLI and its wholly owned software subsidiary, Blume Global, from EQT Partners for a purchase price of $2.4 billion. Blume was separated from DCLI to become a standalone entity upon transaction close.
Prior to the DCLI transaction, Apollo had been following the company for many years. In fact, Apollo submitted the cover bid for DCLI when the business was sold to EQT in early 2016. In late 2018, EQT’s financial advisors ran a sale process for DCLI. When the financing market experienced volatility, HVF was uniquely positioned to negotiate a bespoke transaction structure to bridge the valuation gap and ensure downside protection for our funds’ investment.
Related Insights
Apollo Impact Mission is our dedicated strategy that seeks to leverage our decades of experience in private equity to create impact at scale through its investments.
Private-equity secondaries have developed into a core alternatives allocation for many investors. Led by the expanding opportunity in GP-led secondaries and heightened liquidity needs, we believe the secondaries market for PE will double or triple in size in the next five years.
Apollo Chief Economist Torsten Sløk and co-head of Sponsor and Secondary Solutions (S3) Steve Lessar discuss how private equity secondary markets can create opportunities for investors seeking diversification in an environment where rates are seen higher for longer and public equity valuations remain lofty.
