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Apollo, GMAC Institutional, Launch $200M Fund

NEW YORK CITY-The target investments are junior loans and preferred equity positions, say the leaders of the fund, typically in the $8-million-to-$20-million range.

By John Salustri | Updated on April 01, 2003

NEW YORK CITY-Apollo Real Estate Advisors has joined hands with GMAC Institutional Advisors in the launching of a $200-million fund targeting junior loans and preferred equity positions. Apollo is the managing general partner and GIA the co-general partner in the union, dubbed the Apollo/GMAC Real Estate Mezzanine Fund, which will be targeting investments in junior loans and preferred equity positions. These plays will typically range from $8 million to $20 million per transaction and carry terms up to five years.

Lead investors include insurance companies and a private endowment. A five-year-term credit facility has been provided to the fund by a GMAC affiliate.

While this is Apollo’s first time establishing a fund with a co-sponsor, it’s the second such venture for GIA. “Our two firms are leaders in the equity and debt businesses,” says senior Apollo partner Lee Neibart. “It’s a powerful combination. When Apollo began discussing expanding its investment activities into the mezzanine arena, it was natural to approach GMAC, which is the largest originator of commercial-property first-mortgage debt.”

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