Global asset manager Apollo is acquiring real estate fund manager Bridge Investment Group for $1.5bn (€1.43bn).
NYSE-listed Bridge shareholders will receive 0.07081 shares of Apollo stock for each of their Bridge shares or units. The exchange is valued at $11.50 per Bridge share/unit.
As part of the deal, Bridge’s executive chairman, Bob Morse, will join Apollo as a partner and it is their real estate equity business.
Founded in 2009, Bridge manages $50bn in US residential, industrial and other niche real estate assets. Apollo said the acquisition immediately scales its real estate equity platform and enhances its ability to develop new real estate and hybrid investment offerings.
The merger would elevate Apollo, currently ranked 27th with €68.4bn in real estate assets, to 10th place on the IPE Real Assets Top 150 Real Estate Investment Managers 2024 rankings, surpassing AXA IM Alts, which holds that position with €112.8bn.
David Sambur, partner and co-head of equity at Apollo, said: “We are pleased to announce this transaction with Bridge, which is highly aligned with Apollo’s strategic focus on expanding our origination base in areas of our business that are growing but not yet at scale.
“Led by a respected real estate team including executive chairman Bob Morse and CEO Jonathan Slager, Bridge brings a seasoned team with deep expertise and a strong track record in their sectors. Their business will complement and further augment our existing real estate capabilities, and we believe we can help scale Bridge’s products by leveraging the breadth of our integrated platform.”
Morse said: “This transaction will allow the Bridge and Apollo teams to grow on the strong foundation that Bridge has built since 2009 as we work to pursue meaningful value and impact for our investors and communities.
“With Apollo’s global integrated platform, resources, innovation and established expertise, we are confident that Bridge will be positioned for the next phase of growth amid growing demand across the alternative investments space.”
Once the acquisition is completed, Bridge will operate independently within Apollo, keeping its brand and team.
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