Apollo targets private wealth investors with evergreen secondaries funds

October 16, 2024 (Preqin News) – Apollo Global Management has launched two evergreen secondaries funds, one in the US and one in Europe, as private wealth investors seek greater diversification in their private markets portfolios.

The Apollo S3 Private Markets (ASPM) funds will invest across the capital stack and aim to offer diversification across managers and vintages.

ASPM US is available for accredited US investors through a semi-liquid 1940 Act tender offer, while APSM Lux, part of Apollo’s SICAV umbrella, is open to private wealth investors in EMEA, Asia, and Latin America.

‘The launch of ASPM underscores Apollo’s commitment to providing access to institutional quality alternative offerings tailored to individuals and wealth investors. We continue to make progress as global investors increasingly seek more diversification than what has historically been provided through traditional portfolio construction,’ said Stephanie Drescher, Partner and Chief Client and Product Development Officer at Apollo, announcing the new products.

The number of semi-liquid funds (BDC, ELTIF, Interval Fund, LTAF, Non-Traded REIT, and Tender Offer) tracked by Preqin is 626 with a collective NAV of $390bn. However, the value is a conservative figure, as some funds (largely, ELTIFs and LTAFs) do not disclose.

The number of evergreen secondaries funds is increasing, as fund managers target private wealth investors, including family offices and ultra-high-net-worth individuals who seek periodic liquidity opportunities, immediate capital deployment, and greater diversification across managers, geographies, and vintages.

Established fund managers use their relationships with private wealth managers to offer investment opportunities via evergreen funds. Hamilton Lane launched two infrastructure evergreen funds for US and global investors last week, building on its $8.1bn evergreen platform, while Morgan Stanley has allowed eligible clients to buy and sell shares in private firms on the secondary market through its Private Market Transactions Desk.

Secondaries fundraising was a bright spot within both private equity and private capital last year, securing a record $92.2bn, according to Preqin data. So far this year, 28 secondaries funds have closed with $51.4bn raised. Secondaries fundraising has historically followed a three-year cycle, with many of the biggest fund managers coming to market at the same time. Secondaries funds closed in 2024 have the largest average size of any strategy so far this year, at $2.1bn, followed by direct lending at $1.9bn, according to Preqin data. There are currently 170 secondaries funds in market seeking to raise a total $111.4bn.

Secondaries fundraising: a three-year cycle

Number and value of secondaries funds raised, 2015–2024 YTD

_{Source: Preqin Pro. Data as of October 2024}

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}