Apollo Global Management, an alternative asset manager, and Lighthouse Investment Partners, a fund of hedge funds manager, have announced a strategic alliance between the two firms and Lighthouse's parent company, HFA Holdings.
Through this new alliance, Apollo is expected to further diversify its product offering by adding Lighthouse’s expertise in hedge fund and managed account products to its existing suite of investment strategies.
Lighthouse’s proprietary managed accounts program now has approximately 90 distinct managed account investments across the full range of hedge fund strategies.
As part of the transaction, Apollo will make a $75m convertible note investment into HFA Holdings, the parent company of Lighthouse.
The proposed investment in HFA is a strategic position for Apollo, being undertaken at the parent company level, outside of Apollo’s investment funds. Both firms will continue to operate and be managed independently.
Apollo founder, chairman and CEO Leon Black said Apollo is extremely impressed with Lighthouse’s management team and its unique business model, which Apollo believes is highly complementary to its current product offering and broadens Apollo’s comprehensive range of investment solutions for its clients.