Apollo Global Management has raised approximately $5.4bn for its debut secondaries fund, S3 Equity and Hybrid Solutions, as institutional demand for liquidity accelerates in a subdued dealmaking environment, according to a report by Bloomberg.
The vehicle, which surpassed its fundraising target, is part of Apollo’s broader Sponsor and Secondary Solutions (S3) platform. Since launching in 2022, S3 has raised nearly $10bn across its suite of private market solutions, the firm said in a statement on Thursday.
Managed by Apollo’s S3 Private Markets team, the strategy targets secondary transactions involving the purchase of LP interests from investors – such as pension funds – seeking early liquidity. These deals often involve acquiring positions at discounts to net asset value and may include NAV-based lending, GP-led secondaries, and continuation vehicle support.
“With traditional exit routes still challenged, secondaries provide an increasingly vital tool for investors needing to rebalance or de-risk portfolios,” said Konnin Tam, who co-leads the S3 platform alongside Veena Isaac and Steve Lessar. “We often see better quality assets come to market during periods of volatility.”
Persistent headwinds across private equity exit markets – including uncertainty driven by geopolitical tensions and trade policy – have prompted sponsors to explore alternative routes for generating liquidity for their limited partners. According to Pitchbook, LPs are now enduring the longest distribution drought in over a decade.
The broader secondaries market is forecast to hit record volume in 2024, with transactions projected between $162bn and $182bn, according to Evercore.
