Apollo Enters Deal to Buy Bridge, Expands Real Estate Offering

Core Viewpoint - Apollo Global Management Inc. (APO) has entered into a definitive agreement to acquire Bridge Investment Group Holdings Inc. for an all-stock transaction valued at $1.5 billion, aiming to enhance its real estate offerings [1][3]. Company Overview - Bridge Investment Group, founded in 2009, is an alternative investment manager with a diversified portfolio in residential and industrial real estate, managing approximately$50 billion in assets with over 300 investment specialists [2]. Financial Details of the Deal - Bridge stockholders will receive 0.07081 shares of Apollo for each share held, with each share valued at $11.50. The transaction is expected to close in the third quarter of 2025, with Bridge continuing as a stand-alone platform within Apollo [3]. - The acquisition will nearly double Apollo's real estate assets under management to over$110 billion, and is anticipated to be immediately accretive to Apollo's fee-related earnings upon closing [5]. Rationale Behind the Acquisition - The acquisition aligns with Apollo's strategy to expand its real estate expertise and strengthen its wealth management business, leveraging Bridge's scalability and enhancing Apollo's origination capabilities in real estate equity and credit [4][5]. - Apollo's management emphasized the strategic focus on expanding the origination base in growing areas of the business [6]. Market Performance - Over the past six months, Apollo shares have increased by 32.9%, outperforming the industry average rise of 12.6% [7].