Suddenly the American private equity giant Apollo Global Management has split up from ICICI Venture into its joint venture AION Capital Partners, which specializes in assets under stress.
Both companies will continue to work with AION 1, which has raised $850 million, until their investments are repurchased and the fund completes its activities in the coming years. Apollo and ICICI Venture, a subsidiary of ICICI Bank, will independently exploit future business opportunities in special situations and loans.
Apollo is trying to set up its own credit investment firm in India, Bloomberg quotes people who are familiar with the subject.
A representative of ICICI Venture confirmed the development, said a representative of ICICI Venture : AION, originally established in 2011 as part of the exclusive strategic advisory relationship between Apollo and ICICI Venture (I-Ven), has grown to maturity with the Indian private equity market since its inception. In the light of this development, Apollo and I-Ven agreed on a revised format for their relations from the 1st century AD. April 2020.
As far as the investments of AION Capital are concerned, the joint ventures will be advised by Apollo’s affiliated I Companies until the end of the mandate. I-Ven will continue to protect his rights, interests and duties towards them, the spokesman said.
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Apollo’s representative stated that the company continues to monitor private equity, loans and real estate opportunities in India. The company will invest in the country’s various pools, including its global flagship fund, where it can be most efficient and opportunistic and work with the country’s largest groups, the Apollo statement said.
AION has made a number of significant investments. This includes the purchase of Monnet Ispat, which it acquired in cooperation with JSW Steel in the context of bankruptcy and insolvency proceedings.
Apollo Global Management, the U.S. listed parent company, reported a loss of $2.3 billion in May 2020. Those involved in private investment say that the separation of the tracks could be a clear sign of declining interest in Apollo Land.
AION also took part in a race to buy certain assets during the DHFL crisis, but operations stopped. Sources have reported that Apollo is in the process of mobilizing its Indian Fund 2 of over $1 billion. It’s not at all certain that this will happen.
According to some sources, Apollo’s decision to divorce came rather unexpectedly. Apollo Global Management, the parent company listed on the U.S. stock exchange, reported a loss of $2.3 billion in May 2020. Those involved in private investment say that the separation of the tracks could be a clear sign of declining interest in Apollo Land.
With contributions from Bloomberg