Global alternative asset manager Apollo has agreed to acquire the US wealth distribution and asset management businesses of Griffin Capital.
Apollo said the acquisition is a significant step in building its Global Wealth Management Solutions business, which is focused on the development and distribution of alternatives to individual investors and their wealth advisors.
”Griffin’s approximately 60 client-facing distribution professionals work across the wealth management landscape and are particularly well-established in the independent channel, a complement to Apollo’s focus to-date on private banks, wirehouses, RIAs and family offices,” said the company in a statement on Thursday.
Financial terms of the transaction were not disclosed. Consideration for the acquisition will be all stock, the company said.
Griffin’s asset management business includes over $5 billion of AUM in individual investor-focused products.
Apollo CEO Marc Rowan said, “The democratization of finance brings tremendous opportunity for individual investors to access alternatives. With the acquisition of Griffin, we will significantly advance our US wealth market growth plans that we presented at our recent Investor Day. As one of the first firms to bring alternative strategies to the individual investor and advisor market in the US, Griffin has built trusted relationships over 20‐plus years, and in combination with Apollo can offer the market a broader set of solutions.”
“The world of alternative investments is vast and competitive, and partnering with a world‐class asset manager like Apollo is a logical step in the growth and evolution of Griffin,” commented Kevin Shields, Chairman and CEO of Griffin Capital. “Apollo is committed to building its Global Wealth business, and they have the resources to foster growth of our existing interval fund business and bring creative, new alternative solutions to individual investors. I could not be more thrilled that Apollo recognizes the talent of the Griffin team, across distribution, asset management and supporting functions,” continued Shields.
Stephanie Drescher, Chief Client and Product Development Officer of Apollo, said, “This transaction turbocharges our efforts in the US wealth market by integrating a team that has been singularly focused on serving individuals and advisors through alternative investment strategies. Griffin has strong, longstanding relationships in the US advisor market, and we are excited to welcome them to Apollo. This transaction reflects our strong commitment to sharing the success of Apollo’s platform with an increasingly broad base of individuals and their advisors.”
“We have diligently built Griffin’s business over many years and now take a significant step forward in joining Apollo. As investors, we will integrate with one of the world’s leading alternative platforms, and my distribution colleagues will have a larger and growing set of strategies to help solve their clients’ needs,” said Randy Anderson, Ph.D. and CEO of Griffin Capital Asset Management, who will join Apollo’s Real Estate team as part of the acquisition.
The transaction is expected to be completed by the first half of 2022.
