June 3, 2013

At close, Walton Street Fund VII reaches just 39% of target

Walton Street Capital reached a close for its newest opportunistic real estate fund, Walton Street Real Estate Fund VII, on May 1, 2013, raising $781.6 million based on SEC Form D’s filed for Fund VII parallel funds. Walton Street Fund VII had been on the market since at least September 2011, or around twenty months […]

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May 31, 2013

Report: IPOs create fee windfall for Apollo Global Management

Manager stands to collect as much as $126 million in 2012-2013 for 43 years of advisory services it will not provide A new report looks at termination fees Apollo Global Management collected for advisory services agreements at recent portfolio company IPOs. Key points: In the past several months, Apollo Global Management has taken a number […]

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May 29, 2013

Apollo Global Management made 2x return on its GP stake at the outset from transaction fee on Smart & Final

In late 2012, Apollo Global Management sold retailer Smart & Final to Ares Management, another private equity firm.  Apollo had acquired Smart & Final in 2007 from Groupe Casino. In a filing prior Apollo’s 2007 acquisition of the firm, Smart & Final disclosed that it anticipated paying $40.5 million in transaction fees and expenses to […]

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May 28, 2013

Constellium NV: 11% of IPO proceeds go to pay Apollo for eight years of advisory services it will not provide

Apollo Global Management took Netherlands-based aluminum products producer Constellium NV (NYSE: CSTM) public last week, raising around $333 million in the IPO. Of that, only $180 million will go to the company.[i] Constellium makes aluminum products for the aerospace, packaging and automotive industries and operates 26 production facilities in the United States, Europe and China.[ii] Constellium reported that […]

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May 24, 2013

Taminco Corp: Apollo collects twelve years of management fees after just one year of management

We have previously written about the large transaction and monitoring fees Apollo Global Management and TPG Capital collected from their Caesars Entertainment investment. Apollo and TPG collect monitoring fees of at least $30 million per year from Caesars regardless of how well or poorly the company performs – and they are set to collect five […]

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May 7, 2013

Oregon makes commitment to new Apollo fund contingent on return of 100% of transaction, monitoring fees

We reported recently that the $345 million in transaction and monitoring fees Apollo Global Management and TPG Capital collected on the Harrah’s/ Caesars Entertainment would have outstripped their GP commitments in the deal, creating a misalignment of interests with limited partners. When the Oregon Investment Council committed to Apollo Investment Fund VIII, Apollo’s new buyout fund, […]

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March 12, 2013

Have Apollo, TPG already recouped their GP investments in Caesars Entertainment?

Transaction, monitoring fees raise questions about GP-LP interest alignment Apollo Global Management’s and TPG Capital’s Caesars Entertainment (previously Harrah’s Entertainment) investment has fallen far short of expectations. TPG Partners V and Apollo Investment Fund VI, along with a number of co-investors, acquired Caesars in 2008 at a price of $90 per share[i] or $6 billion […]

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