Apollo Asset Management’s 8-K Filing January 27 Describes Effects of Griffin Acquisition
January 28, 2022 | James Sprow | Blue Vault
Griffin Acquisition
On December 2, 2021, a definitive agreement to acquire Griffin’s US wealth distribution and asset management businesses in an all-stock transaction was announced. The acquisition is a significant step in building Apollo’s Global Wealth Management Solutions business, which is focused on the development and distribution of alternatives to individual investors and their wealth advisors. We believe this acquisition will expand our retail investor presence, accelerate our global wealth build, and will be strategically accretive. More specifically, Griffin will expand our presence in the independent broker dealer and wirehouse distribution channels and includes two retail interval funds totaling approximately $5 billion of assets under management. We expect Griffin to generate higher fee related revenues and costs and to become a meaningful driver of earnings growth from Apollo’s Global Wealth Management Solutions business in the years ahead.
The Griffin transaction is expected to close in two phases. We expect to complete the acquisition of the US wealth distribution in the first quarter of 2022, followed by the anticipated close of the acquisition of the investment advisers to the two retail interval funds in the second quarter of 2022. The Griffin acquisition is subject to customary closing conditions, including approval by stockholders of Griffin Institutional Access Real Estate Fund and the Griffin Institutional Access Credit Fund.
The Griffin transaction is expected to be approximately breakeven to Apollo’s after-tax DE per share in 2022.
Shares Outstanding
As of December 31, 2021, Apollo had approximately 249 million shares of common stock issued and outstanding. As of December 31, 2021, DE (“Distributable Earnings”) shares outstanding were approximately 461 million shares, which includes vested and unvested equity awards issued in conjunction with the compensation reset and 1.7 million of newly issued shares committed to establishing a non-profit foundation.
As of January 6, 2022, Apollo had approximately 571 million shares of common stock issued and outstanding. DE shares outstanding is currently approximately 600 million shares. Pro forma for the expected closing of the Griffin transaction in the second quarter of 2022, DE shares outstanding is approximately 604 million shares.
DE shares outstanding consist of total shares of common stock outstanding, Apollo Operating Group Units that participate in dividends and restricted share units (“RSUs”) that participate in dividends. See “Non-GAAP Disclosures and Reconciliation” below for the share reconciliation.
Source: SEC
