Apollo Global Management is set to invest more than $1bn in Brad Jacobs’ building products distributor QXO as part of a financing round to support the company’s acquisition-led growth strategy, according to a report by Bloomberg citing people familiar with the matter.
The investment will be made through convertible preferred stock, with an initial conversion price of $23.25 per share, representing an 18% premium to QXO’s previous closing price. The round is also backed by investors including Franklin Templeton. As part of the financing terms, QXO is reportedly required to complete at least one acquisition by mid-July.
The transaction strengthens the expansion plans of QXO Founder and Chief Executive Brad Jacobs, who is seeking to build a $50bn-revenue distribution platform within the next decade. Apollo, which manages $908bn in assets, has previously partnered with Jacobs, including investments in United Rentals.
Founded in 2023, QXO is pursuing consolidation across the building products distribution sector. The company completed its first acquisition in April 2025 with the $11bn purchase of Beacon Roofing Supply, including debt. Beacon generated approximately $10bn in revenue at the time of the deal. QXO raised a further $2bn in equity last summer following the acquisition.
