Hostplus made a $500 million anchor commitment to a new dedicated Apollo Asia Pacific credit strategy that Apollo Global Management launched with $1.25 billion in assets, a joint news release said.
"This launch is part of our broader investment strategy to help to further diversify our investment portfolio to protect and grow our member investments over the long-term," Hostplus CEO David Elia said in the Wednesday news release. Hostplus is a Melbourne-based superannuation fund with more than A$68 billion ($47.2 billion) in retirement assets.
The superannuation fund is making its commitment alongside Apollo's internal and affiliated insurance balance sheets, which account for remainder of the initial capital raised for the strategy. However, Apollo expects "to raise additional institutional capital for APAC credit, in addition to its ability to tap its global $373 billion credit platform," an Apollo spokeswoman said.
Apollo's new Asia Pacific credit strategy will focus on investing in Australia, India, Singapore, South Korea and Hong Kong. Apollo already has about $10 billion of assets under management invested in the region. Last year, Matt Michelini, an Apollo partner, became head of Asia-Pacific and moved to Singapore from New York. Apollo also hired an Australia-based credit team led by Anthony Hermann, also a partner at Apollo.
Apollo reported $513 billion in assets under management as of March 31, up 13% from Dec. 31.