NEW YORK - Standard Chartered (OTC:SCBFF) PLC has entered into a strategic partnership with Apollo Global Management (NYSE:APO) (market cap: $87.59B), acquiring a minority stake in Apollo's infrastructure debt platform, Apterra. This move by the prominent financial services player, as identified by InvestingPro, is aimed at bolstering global financing for infrastructure, clean transition, and renewable energy projects.
The collaboration, announced today, involves a commitment by Standard Chartered and Apollo Clean Transition Capital (ACT Capital) to provide up to $3 billion in clean energy and transition financing. Apterra, which specializes in infrastructure debt origination, will be the primary vehicle for these financing activities. Apollo's strong financial position, with revenue of $31.67B and a healthy current ratio of 1.93, supports this ambitious initiative.
Jim Zelter, Co-President of Apollo Asset Management, emphasized the importance of this partnership in meeting the growing capital demands for sustainable infrastructure and power. Bill Winters, Group Chief Executive of Standard Chartered, highlighted the synergy between the two firms' origination and distribution capabilities, which will enhance the scale of financing they can jointly provide.
Apterra, established in 2023, has already executed transactions exceeding $4.8 billion and is expected to grow further with Standard Chartered's support. The platform is led by industry veterans Ralph Cho and Michael Pantelogianis.
Standard Chartered, a leading bank in cross-border and wealth management, is recognized as a top infrastructure lender in Asia, Africa, and the Middle East, with a growing presence in the renewables sector.
As part of the partnership, Standard Chartered will also offer a senior secured credit facility to ACT Capital for funding project finance and infrastructure loans. While financial details of Standard Chartered's equity interest in Apterra were not disclosed, PJT Partners (NYSE:PJT) served as Standard Chartered's exclusive financial advisor for the transaction.
This partnership is based on a press release statement and reflects the companies' commitment to supporting sustainable growth through innovative financial solutions. According to InvestingPro analysis, Apollo appears undervalued at current levels, with 12 additional ProTips available for subscribers looking to dive deeper into the company's fundamentals and growth prospects. Access the comprehensive Pro Research Report, part of InvestingPro's coverage of 1,400+ US equities, for detailed insights into Apollo's valuation and growth potential.
In other recent news, Databricks Inc. has secured over $5 billion in its largest debt financing round, intending to use these funds to alleviate tax burdens related to employee stock sales. This financing round follows a $10 billion funding round announced last year, which increased the software maker's valuation to $62 billion. In the meantime, Apollo Global Management is set to acquire Argo Infrastructure Partners, expanding its infrastructure portfolio by approximately $6 billion. The acquisition is expected to modestly increase Apollo's fee-related earnings by 2026.
On a different note, GFL Environmental (NYSE:GFL) Inc. sold its Environmental Services business to Apollo and BC Partners for an enterprise value of $8 billion. The transaction is expected to close in the first quarter of 2025. Also, Apollo reported strong preliminary financial results for Q4 of 2024, with an estimated pre-tax alternative net investment income of approximately $265 million.
Lastly, Victory Capital Holdings (NASDAQ:VCTR) has been highlighted by BMO Capital Markets as a top pick among asset managers with potential for stock buybacks in 2025. The firm raised its price target for Victory Capital from $71.00 to $78.00, maintaining an Outperform rating. These are all recent developments that investors should consider.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.