Apollo Increases Capital to $930M for Debt Fund

NEW YORK CITY-Apollo Real Estate Advisors has raised additional capital for its debt investment fund, Apollo Real Estate Finance Corp. Apollo increased overall capital for AREFIN’s investment program from $621 million to $930 million through the formation of AREFIN Co-Investment Corp. According to the firm, the additional funds will provide it with the “ability to make larger investments.”

AREFIN, formed in 2006, originates loans for development, redevelopment and repositioning, and invests in whole loans, B-notes and mezzanine loans. “The continuing credit crisis has created increased opportunity for us as both a buyer and originator of debt,” says Bradford Wildauer, Apollo partner who oversees the firm’s US debt investments. “We’ve experienced an increase in the number of opportunities presented to us with more attractive returns and greater ability to structure terms that meet our lending criteria.”

Wildauer says ACC, the new vehicle, was formed to accommodate the increased deal flow and to handle loan commitments up to $250 million. “In managing AREFIN, we felt it was prudent to limit loan commitments and retained investment amounts for a single transaction,” he explains. “The new vehicle gives us the ability and the flexibility to handle large portfolio transactions.” Further comment on specific interests of the fund was unable to be answered by deadline.