Apollo Buys Irradiant: $11B CLO Deal
- Redding Ridge Asset Management (RRAM), an affiliate of Apollo, has reached an agreement to acquire Irradiant Partners, an alternative asset manager.
- The deal will add nearly $10.7 billion in CLO assets to RRAM's portfolio, positioning it among the top five CLO managers with about $38 billion in assets.
- The initial closing,encompassing liquid and private credit,is expected in the second quarter.
Redding Ridge, backed by Apollo, is set to acquire Irradiant Partners in an $11 billion move that will substantially boost Redding Ridge’s CLO assets, vaulting it into the upper echelon of CLO managers. This strategic acquisition underscores Apollo’s commitment to expanding its asset management prowess, adding nearly $10.7 billion in CLO assets and further diversifying its portfolio with private credit and renewable energy assets managed by Irradiant. The deal, expected to close in the second quarter, will see Irradiant’s founders integrated into Apollo and Redding Ridge leadership, promising a seamless transition and operational synergy, according to News Directory 3. This bold maneuver by Apollo signals a proactive approach to capitalize on market opportunities. Discover what’s next for Apollo and its expanding portfolio.
Apollo’s Redding ridge to Acquire Irradiant Partners, Expanding CLO Management
Redding Ridge Asset Management (RRAM), an affiliate of Apollo, has reached an agreement to acquire Irradiant Partners, an alternative asset manager. The acquisition will considerably increase RRAM’s collateralized loan obligation (CLO) assets under management.
The deal will add nearly $10.7 billion in CLO assets to RRAM’s portfolio, positioning it among the top five CLO managers with about $38 billion in assets. Apollo will also gain $2.2 billion in private credit and renewables assets from Irradiant.
The initial closing,encompassing liquid and private credit,is expected in the second quarter. RRAM will finance the acquisition using existing cash reserves.The financial details of the transaction remain undisclosed. Both RRAM and Apollo intend to retain the majority of Irradiant’s workforce.
Irradiant was established in 2021 by michael Levitt, John Eanes, and Jon Levinson.Following the acquisition, Eanes will become CIO of RRAM U.S., while Levitt and Levinson will transition to Apollo.
Bret Leas, RRAM board member and Apollo partner, noted the importance of scale and operating leverage in portfolio management and the overall business model.
Redding Ridge, founded in 2016 as an independently managed affiliate of Apollo, has rapidly grown into a major collateral manager for CLO transactions in the U.S. and Europe. Currently, Redding Ridge manages over $27 billion in assets.Apollo reported total assets of $750 billion at the end of January.
This acquisition follows Apollo’s January proclamation of it’s proposed acquisition of Argo Infrastructure Partners, which would add approximately $6 billion in assets to Apollo’s infrastructure portfolio.Apollo is strategically expanding its asset management capabilities through these acquisitions, particularly in the areas of CLO management and alternative investments.
What’s next
The acquisition is expected to close in the second quarter, pending regulatory approvals and customary closing conditions. The integration of Irradiant’s team and assets will further strengthen Apollo’s position in the CLO market and expand its capabilities in private credit and renewable energy investments.