Apollo Management, which is one of the largest private equity firms, has traded on Goldman Sach's (NYSE: GS) private exchange, GSTrUE OTC. Unfortunately, the shares are down 40% (since August). Of course, other alternative asset managers – such as Blackstone (NYSE: BX) and Fortress Investment Group (NYSE: FIG) – have suffered plunges as well.
So what's the next step for Apollo? Well, the firm plans to trade on the NYSE. The IPO filing calls for raising $475 million of capital.
Apollo got its start in 1990 and profited handsomely from distressed investments (keep in mind that this was after the buyout boom). Now, the firm manages $40.3 billion and has recently raised a fund for $12.5 billion. Over the past 18 years, Apollo has generated an impressive 29% net internal rate of return.
In 2007, Apollo's revenues spiked 84% to $637.9 million. Economic net income fell 59% to $152.8 million.
However, returns may come under pressure. After all, Apollo binged on a variety of dicey deals, such as Linens 'n Things and Realogy. Wall Street investors may be somewhat skeptical.
To get the full details on the offering, you can find Apollo's IPO prospectus at the SEC's website.
Tom Taulli is the author of various books, including The Complete M&A Handbook
