'Apollo PEF with Assets of 731 Trillion Won, Launches Full-Scale Operations in Korea'

James Zelter CEO Holds Series of Meetings with Pension Funds and Mutual Aid Associations
JV to Be Established Soon in Growing Korean Market
Seeking Opportunities in Credit Markets Such as Corporate Loans and Acquisition Finance

[Asia Economy Reporter Park So-yeon] Apollo Global Management (Apollo), a global private equity fund (PEF) manager managing assets worth 731 trillion KRW, has begun full-scale activities ahead of its entry into the Korean market.

According to the investment banking (IB) industry on the 31st, James Zelter, CEO of Apollo Asset Management, recently visited Korea and met with chief investment officers (CIOs) of major pension funds and mutual aid associations to discuss various investment strategies.

A senior official from a mutual aid association said, "Global major private equity fund managers who used to cover the Asian market mainly from Hong Kong are recently registering their own management companies directly in Korea as the Korean market size grows," adding, "Recently, CEO James Zelter visited Korea and contacted major institutions."

Apollo is considered one of the four major U.S. PEF managers along with Blackstone, Kohlberg Kravis Roberts (KKR), and The Carlyle Group. Apollo plans to establish a joint venture (JV) in Korea with EMP Belstar, a U.S.-based alternative investment manager, with a 50-50 equity structure.

Apollo specializes in providing various financing options to companies that need to secure liquidity due to restructuring or discovering new growth engines.

As many domestic companies are struggling with borrowing due to the recent sharp interest rate hikes by commercial banks, it is expected that private equity fund managers including Apollo will propose private credit solutions such as loans, asset securitization, and acquisition financing.

The newly established Apollo domestic corporation will raise a $1 billion (approximately 1.4255 trillion KRW) blind fund as its first product simultaneously with the JV establishment. The fund will be raised from Korean and overseas institutional investors and is expected to supply funds to companies with competitive interest rates and loan-to-value (LTV) conditions compared to large banks. It will provide various private credit services such as asset securitization solutions, secured loans, and acquisition financing targeting domestic large and mid-sized companies as well as fund managers.

Meanwhile, Apollo is a U.S.-based alternative investment company established in 1990. As of the first quarter of this year, it manages a total of $513 billion (approximately 731 trillion KRW) in assets. Its core credit assets exceed $373 billion (approximately 531.7115 trillion KRW), ranking first in the world.

This content was produced with the assistance of AI translation services.