New York-based Apollo Global Management closed its Apollo Accord Fund III B with $1.75 billion in commitments, showing the popularity of its dislocated credit strategy.
The latest in Apollo’s flagship Accord series that began in 2017, the fund’s capital commitments were raised over approximately eight weeks due to institutional demand for strategies amid the volatility and deteriorating market conditions seen in the first quarter.
The strategy seeks to purchase mispriced credit risk, according to John Zito, deputy CIO of credit and co-head of global corporate credit at Apollo.
“We saw significant investment opportunities in the first quarter driven by the volatile environment and we expect the volatility to continue as markets respond to the crisis and structural conditions,” he said.
One the fund’s investors is the C$70 billion Investment Management Corporation of Ontario, which committed C$250 million to the new fund.
Accord is one of several strategies that the $316 billion firm has designed to address the opportunity set across dislocation, distressed, origination and capital solutions.
The latest Accord strategy focused on acting as a liquidity provider during times of broad-based market stress by purchasing high-quality, secured cross-asset credit risk, according to Apollo.