Apollo to buy 50% stake in MaxCap to make commercial real estate debt debut in Australasia

Apollo has agreed to acquire up to 50% of Australasian commercial real estate financier and fund manager MaxCap Group. The firm said the deal would help it extend its reach in the sector into Australasia, a region it says has significant growth in lending opportunities. 

Apollo currently originates commercial real estate debt and equity solutions across North America, Europe and Asia.

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Founded in 2007, MaxCap has made more than 450 investments totalling over A$11bn. It has a forward pipeline of more than A$6bn, it said.

Apollo said it will continue MaxCap’s growth in Australia and New Zealand through bolstering the company’s access to capital and leveraging on Apollo’s credit platform.

Scott Kleinman, co-president at Apollo said, “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. This is an exciting opportunity to expand our origination capabilities, support the strong management team and together leverage our highly complementary platforms and expertise.”

The deal followed the firm’s acquisition of UK mortgage lender Foundation Home loans in July and the commitment of $500m to Victory Park Capital’s growth lending strategy in June.

In other recent deals, Apollo announced a $5bn acquisition of Yahoo last week and agreed to back part of the incumbent local exchange carrier business of Lumen Technologies for $7.5bn last month, including debt assumption of approximately $1.4bn.

The firm is said to be raising a $500m fund targeting investments in SPACs.

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