Dec 9, 2024, 4:00 AM
Dec 9, 2024, 4:00 AM

Apollo invests $370 million in controversial infrastructure deal

Highlights
  • Apollo Global Management and Santander announced a partnership in New York on December 9, 2024.
  • The partnership involves investing approximately $370 million into an infrastructure credit portfolio managed by Apollo's affiliate, Apterra.
  • This collaboration reflects a strategy from both companies to capitalize on the growing demand for infrastructure investments and private debt mobilization.
Story

In a significant financial development occurring in the United States, Apollo Global Management announced today its partnership with Santander to finance an infrastructure portfolio valued at approximately $370 million. This financial transaction is notable due to its size and the strategic collaboration between the two financial institutions. The initiative is part of a broader trend among investment firms to channel capital into infrastructure, aimed at addressing the increasing demands for such investments globally. The deal is being managed by Apterra, an affiliate of Apollo that was established in 2023. Apterra focuses on innovative financing solutions specifically tailored for infrastructure projects, which are becoming increasingly vital given the current global economic landscape. According to Samuel Feinstein, Apollo Partner and President of ACT Capital, the partnership with Santander underscores their long-standing relationship and signifies the bespoke financing solutions that Apollo is primed to offer, particularly in a burgeoning sector such as infrastructure finance. Marcel Patino, Global Head of Private Debt Mobilization at Santander, expressed contentment regarding their collaboration with Apollo and Apterra. He emphasized the alignment of this deal with Santander's strategy to rotate assets and enhance profitability, pointing towards an increasing focus on private debt mobilization. This partnership is seen as part of a broader strategy to accelerate the bank's transformation efforts, which are crucial in today’s competitive financial environment. Moreover, Apollo has made notable strides in the domain of clean energy, highlighting its commitment to sustainable finance. In the five years preceding this announcement, Apollo has invested over $40 billion into energy transition and climate-related initiatives. The company is actively pursuing opportunities to further expand its clean energy investments, targeting a deployment of $50 billion by 2027 and potentially exceeding $100 billion by 2030. This inclination towards sustainable investments indicates a growing recognition of environmental considerations in financial decision-making, paving the way for future partnerships and investment avenues in the infra-structure and clean energy sectors.

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