Apollo Global Management Tuesday announced that clients managed by its affiliates have entered into a definitive agreement to acquire up to a 50% equity stake in MaxCap Group, an Australasian commercial real estate (CRE) financier and fund manager.
Founded in 2007, MaxCap is headquartered in Melbourne. Following completion of the deal, MaxCap co-Founders Wayne Lasky and Brae Sokolski will continue to lead the company and retain the remaining shareholdings.
”The strategic investment will align MaxCap with one of the world’s leading asset managers and enable the business to continue its rapid growth in Australia and New Zealand,” said the companies in a joint statement. ”The transaction is expected to bolster MaxCap’s access to capital and strengthen its ability to create and deliver innovative lending solutions for borrowers alongside Apollo’s leading credit platform. MaxCap expects to generate significant investment opportunities for its clients, and today has a forward pipeline of more than A$6 billion. Since its founding, the company has had a strong track record of performance across more than 450 investments totaling more than A$11 billion.”
Apollo said the investment extends the firm’s reach into Australasia, an attractive market with significant growth in lending opportunities, for the company and its clients.
Currently, Apollo originates commercial real estate debt and equity solutions across North America, Europe and Asia, and through this transaction expects to increase its activity in Australasia.
Wayne Lasky, MaxCap’s Co-Founder and Managing Director said, “We are driven to deliver the highest quality and broadest array of investment opportunities for our clients. This transaction is a key aspect of fulfilling our promise of creating lasting value for them. We look forward to achieving that by leveraging Apollo’s extensive industry expertise, coupled with the capital firepower they bring to the table. This will further enable us to provide compelling solutions for every commercial real estate sector at every stage of the real estate life cycle, and we’re thrilled to join forces with such a highly respected global manager.”
Wayne Lasky emphasised how MaxCap has created a market leading platform and built a high-quality Australasian team. “This partnership is a watershed moment and a key component of our team’s long-term strategic plan. Now we are looking forward to the next phase of MaxCap’s growth and to delivering further client value together with a partner who shares our vision and strategy,” he said.
Apollo Co-President Scott Kleinman said, “Australia presents significant long-term opportunities for Apollo and we’re thrilled to strategically partner with MaxCap, a leader in the non-bank real estate lending space with a standout reputation. This is an exciting opportunity to expand our origination capabilities, support the strong management team and together leverage our highly complementary platforms and expertise.”
Philip Mintz, Senior Partner, Real Estate at Apollo said, “MaxCap is an industry leader and we’re excited to provide capital and strategic support to help accelerate their business and increase our activity in Australia. The company’s strong track record of origination, its market positioning in Australia and New Zealand, and its performance have made them a partner of choice for investors and borrowers alike. Together we see significant opportunity ahead as the non-bank real estate credit market continues to grow in the region.”
Philip Mintz noted that the Apollo funds’ investment in MaxCap was the latest extension of its investment origination platforms. It follows a recently announced transaction with Foundation Home Loans, a specialist UK mortgage lender, as well as a strategic agreement with Victory Park Capital in the US to invest in asset-backed credit facilities for emerging companies. Apollo’s strategy to build, buy, and partner with proprietary origination platforms enhances the firm’s ability to source and structure investments for its insurance and institutional clients.