Apollo closed on $8.5 billion in total commitments for the Accord+ strategy, inclusive of $4.8 billion for Accord+ Fund II (“the Fund”) as well as separately managed accounts and related structures. The successful close of the second vintage exceeds internal targets and brings total assets for Apollo’s hybrid credit business to approximately $40 billion.
Accord+ II employs an opportunistic strategy focusing on high-conviction investments across the credit spectrum. The Fund is expected to tactically allocate to high quality, top of the capital structure investments across both private corporate credit and asset-backed finance as well as secondary opportunities as informed by prevailing market conditions.
“As rates stay higher-for-longer and volatility impacts capital flows, we see an attractive market for opportunistic credit investments, alongside our highest-conviction themes,” said Chris Lahoud, Partner and Head of Opportunistic Credit at Apollo. “We believe our scaled, integrated Credit platform positions us well to execute with speed and certainty in all market environments, including periods of dislocation.”
John Zito, Co-President of Apollo Asset Management and Head of Credit, added, “We are pleased to see strong investor demand for the latest vintage of our Accord+ series, which we view as a result of our investment acumen, alignment and the market opportunity at hand. Accord+ is also a great illustration of our focus on product innovation, building upon the original Accord dislocation strategy to respond to investor needs and deploy capital to many of our best ideas throughout market cycles.”
The Accord+ II close reflects broad support from a global and diverse group of investors including pension funds, sovereign wealth funds, financial institutions and family offices. Apollo intends to continue building its Accord strategy family within its hybrid business, including future funds and bespoke credit solutions tailored to institutional and wealth clients.
Paul, Weiss, Rifkind, Wharton & Garrison LLP represented Apollo in connection with the closing of the Accord+ II Fund.