NYSE-listed Apollo Global Management is acquiring a 50% stake in commercial real estate financier and fund manager MaxCap, with expectations that the non-bank lending sector in the region is set for a growth phase.
MaxCap’s founders Wayne Lasky and Brae Sokolski have both sold off a 25% share in the company they started in 2007. They will continue to lead the company and retain the remaining shares.
The company currently has a forward pipeline of more than $6 billion, and has made more than 450 investments totaling over $11 billion during its existence.
Most recently it committed to funding S&S Group’s new luxury mixed use development on the Gold Coast, and a first mortgage land facility to Made Group for the acquisition of land in New Zealand’s Hamilton City region.
It also provided a $97 million first mortgage construction facility to Franze Developments to deliver Geelong Quarter in Victoria.
For the $635 billion asset manager Apollo and its clients, the investment extends the firm’s reach into Australasia, which it describes as an “attractive market with significant growth in lending opportunities”.
Apollo originates commercial real estate debt and equity solutions across North America, Europe and Asia, and now expects to increase its activity in Australasia.
“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,” Apollo co-president Scott Kleinman said.
Lasky said MaxCap is looking forward to “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.”
Apollo has been active in investment origination platforms, having recently struck deals specialist UK mortgage lender Foundation Home Loans, and Victory Park Capital in the US to invest in asset-backed credit facilities for emerging companies.
Commercial real estate debt has hit yet another all-time high, with the industrial sector driving demand in the total $265.5 billion pool.