European Principal Finance
European Principal Finance
Our Approach
Our Approach
European Principal Finance is an established platform at the nexus of Apollo’s core competencies. We seek to identify excess returns in credit and real asset-oriented special situations assets by focusing on complex, misunderstood and mispriced real assets. Our European Principal Finance business (“EPF”), founded in 2008, has grown to be the second largest closed-end fund product at Apollo behind our private equity platform.
EPF draws on Apollo perspectives across credit, real assets and private equity. The business seeks to capture European deleveraging opportunities across non-performing loans, opportunistic and distressed real estate assets and a variety of asset types that no longer work on regulated balance sheets. We've combined Apollo’s resources and investment philosophy in EPF to seek to find excess yield in a downside-protected risk-adjusted manner.
At-A-Glance
At-A-Glance
€52B+
Transaction Value
100+
Transactions in 15 Years
28
Investment Professionals
14
On-the-Ground Presence in European Countries
As of June 30, 2023
Discount to Asset Value
Income / Rehabilitated Yield
Value-Add during Ownership
Residual Value (Asset Appreciation / Yield Compression)
Key Components
Key Components
Non-Performing and Non-Core Credit
- Non-performing credit assets from banks, insurers and state asset management companies
- Real estate-owned ("REO") portfolios owned by financial institutions
- Structured non-performing loan ("NPL") and REO joint ventures
Asset-Backed Capital Solutions
- Private structured debt or equity “capital” structure-gap solutions
- Non-core, capital inefficient run-off credit portfolios
- Discounted pay-of (“DPO”) financings to borrowers
- Bespoke structured credit or asset-backed securities
Special Situations
- Forced and distressed sellers of real estate, usually in portfolio format
- Complex, undervalued real estate corporate structures
- Thematic real estate aggregation strategies
Related Insights
Related Insights
Apollo Chief Economist Torsten Slok and Vice Chairman of Global Real Estate Philip Mintz discuss investment opportunities amid a still-volatile economic environment. They cover a lot: credit, equity, and real estate valuations, portfolio allocations, and much more.
Market Insight | View from Apollo
How to Think About the Role of Private Capital in the Clean Transition
Apollo Chief Economist Torsten Sløk and Olivia Wassenaar, Head of Sustainability and Infrastructure at Apollo, engage in a thoughtful and thought-provoking discussion about the outsized and unprecedented investment opportunity that is the clean transition in a new episode of The View from Apollo podcast.
Real Assets | Investment Insight
Clean Transition Investing: From Managing Risk to Unprecedented Opportunity
The world requires substantial investment in the transition to cleaner sources of energy. We view investment in the clean transition as an overarching theme rather than a specific asset class. Solutions will require investments across the capital stack and with all forms of capital—including equity, debt, and various real-asset structures—from both public and private sources.
