Apollo-managed funds have invested $1 billion in subordinated hybrid notes issued by Aldar Properties, the Abu Dhabi-based real estate developer and investment manager, extending a partnership that has now produced $2.9 billion in aggregate commitments across five transactions in four years.
The proceeds are intended to support Aldar’s balance sheet flexibility and fund its growth plans, which include replenishing its landbank, expanding its develop-to-hold portfolio, and pursuing acquisitions. The transaction ranks among the largest foreign direct investments in Abu Dhabi’s private sector and the largest corporate hybrid private placement in the region.
Faisal Falaknaz, Aldar’s group chief financial and sustainability officer, said the issuance provides long-term, flexible capital that supports Aldar’s ability to act on opportunities across its core markets. He added that the deal “elevates Aldar’s share of stable, recurring income” generated by its investment properties portfolio, which he said will continue to expand through acquisitions and a develop-to-hold pipeline now valued at close to $5 billion.
The Aldar relationship
Apollo’s involvement with Aldar dates to February 2022, when the two parties signed a $1.4 billion commitment structured across four components: a $500 million land joint venture, $500 million in perpetual subordinated notes issued by Aldar Investment Properties, a $300 million mandatory convertible preferred equity investment, and a $100 million common equity stake. The land joint venture was designed to unlock long-term value in Aldar’s landbank while preserving the developer’s flexibility to build or sell. Apollo’s direct minority stake in Aldar Investment Properties was taken at net asset value—a unit rated Baa1 by Moody’s, the highest credit rating for a non-government corporate in the region.
A fourth transaction followed in January 2025, when Apollo-managed affiliates, funds and clients invested $500 million in subordinated notes issued by Aldar, one of the region’s largest corporate hybrid private placements at the time. That deal brought aggregate Apollo-led investment in Aldar to roughly $1.9 billion.
Apollo Partner Jamshid Ehsani said the latest transaction reflects the firm’s ability to structure capital solutions responsive to the needs of corporate clients and investors alike. “Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team,” he said.
Aldar has also drawn backing from other institutional investors. In December 2025, Mubadala Capital and Aldar announced plans to launch Aldar Capital, a real estate and infrastructure platform targeting the UAE and wider GCC region, with a $1 billion fundraise planned for 2026. That initiative followed Mubadala Investment Company’s deal to invest AED 30 billion ($8 billion) in partnership with Aldar.
High Grade Capital Solutions
The Aldar investment is the latest transaction for Apollo’s High Grade Capital Solutions business, which serves as a capital partner to large global companies and, according to the firm, counts a high proportion of repeat clients.
Apollo President Jim Zelter said during the firm’s third-quarter 2025 earnings presentation that the volatility following President Trump’s “Liberation Day” tariffs benefited the business, which originated more than $8 billion during the quarter. Notable transactions by the strategy include a $750 million investment-grade financing for Mumbai International Airport and an investment of up to £4.5 billion ($6 billion) in fixed-rate callable notes issued by Electricite de France, which the firm described as one of the largest sterling-denominated private credit transactions on record. Apollo has also deployed a €1 billion ($1.2 billion) euro investment for a 20% stake in German real estate manager Deutsche Wohnen, executed in partnership with Vonovia.
As of Dec. 31, 2025, Apollo manages approximately $938 billion in assets, the majority of which (about 79.9%) are in credit.
