Apollo Global Management has entered into a definitive agreement to acquire Bridge Investment Group in an all-stock transaction valued at approximately US$1.5 billion (A$2.36 billion).
Bridge, established in 2009, is a United States leader in residential and industrial real estate with a $50 billion portfolio of assets under management.
The acquisition aims to enhance Apollo’s origination capabilities in real estate equity and credit, aligning with their long-term growth strategy.
The transaction is expected to immediately accrete Apollo’s fee-related earnings upon closing.
Apollo's Co-Head of Equity, David Sambur, expressed optimism about the deal, highlighting Bridge's experienced leadership team and the synergies with Apollo’s existing real estate strategies. Bridge will continue to operate as a standalone platform within Apollo's asset management business.
Sambur said, “We are pleased to announce this transaction with Bridge, which is highly aligned with Apollo’s strategic focus on expanding our origination base in areas of our business that are growing but not yet at scale. Led by a respected real estate team including Executive Chairman Bob Morse and CEO Jonathan Slager, Bridge brings a seasoned team with deep expertise and a strong track record in their sectors. Their business will complement and further augment our existing real estate capabilities, and we believe we can help scale Bridge’s products by leveraging the breadth of our integrated platform. We look forward to working with Bob and the talented Bridge team as we seek to achieve the strategic objectives we laid out at our recent Investor Day.”
Bridge's Executive Chairman, Bob Morse, emphasised the growth potential and alignment with Apollo's commitment to performance and excellence.
Morse said, “We are proud to be joining Apollo and its industry-leading team, who share our commitment to performance and excellence. This transaction will allow the Bridge and Apollo teams to grow on the strong foundation that Bridge has built since 2009 as we work to pursue meaningful value and impact for our investors and communities. With Apollo’s global integrated platform, resources, innovation and established expertise, we are confident that Bridge will be positioned for the next phase of growth amid growing demand across the alternative investments space.”
The transaction is expected to close in Q3 2025, subject to regulatory approvals and Bridge stockholder approval.
Bridge management has agreed to vote in favour of the transaction, which will make Bridge a privately-held company.
Due to the pending transaction, Bridge cancelled its Q4 and FY2024 earnings conference call.
Advisors to the deal include BofA Securities, Citi, Goldman Sachs, Morgan Stanley, and Newmark Group for Apollo, and J.P. Morgan Securities for Bridge.