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Apollo Jumps Into Impact Investing With Plan to Raise $1 Billion

Apollo Jumps Into Impact Investing With Plan to Raise $1 Billion

  • Firm plans to set up business as investor demand grows
  • Alternative managers pushing into socially conscious investing

Apollo Global Management LLC is planning to set up an impact investing arm, according to people with knowledge of the matter, following some of its biggest peers in targeting funds dedicated to sustainability.

The New York-based firm is seeking at least $1 billion for its debut social impact fund, said the people, who requested anonymity because the matter is private. A representative for Apollo declined to comment.

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Leon Black

Photographer: Patrick T. Fallon/Bloomberg

Alternative asset managers are starting funds devoted to meeting environmental, social and governance targets as they seek to gather a steady stream of fees and diversify offerings for investors as demand grows. KKR & Co. recently exceeded its $1 billion fundraising goal for its debut global impact fund, Bloomberg reported last week. Blackstone Group Inc. and Carlyle Group LP are also pushing into the arena and have recently hired executives to build their impact strategies.

TPG’s $2 billion Rise Fund is the largest impact investing pool, though the firm is targeting at least $3 billion for its second vehicle.

Apollo, led by Leon Black, had $312 billion in assets under management as of June 30, according to filings.