page_title: Apollo Global Management
section_title: 2005–2010
hierarchical_section_title: Apollo Global Management / History / 2005–2010
caption_attribution_description: English: Linens 'n Things going out of business at New Hope Commons in Durham, North Carolina.
context_page_description: Apollo Global Management, Inc., is a global alternative investment manager firm. It was founded in 1990 by Leon Black, Josh Harris, and Marc Rowan. Apollo is headquartered in New York City, with additional offices across North America, Europe and Asia. The company's stock is publicly traded on the NYSE under the symbol 'APO'.
  The firm specializes in investing across credit, private equity, and real assets.
  Apollo Global Management reported $315.5B of assets under management at the end of March 2020. Around 66% of assets are in the credit business. Around 21% of assets are in private equity. The remaining assets are in real assets.
  Among the most notable companies Apollo has an investment in are ADT, CareerBuilder, Cox Media Group, Intrado, Rackspace, Redbox, Shutterfly, and Smart & Final.
context_section_description: Between 2005 and 2007 the private equity market was booming, with new "largest buyout" records set and surpassed several times in an 18-month window. Although Apollo was involved in a number of notable and large buyouts, the firm avoided the very largest transactions during the time. Among Apollo's most notable investments during this period included Harrah's Entertainment, a leading US gaming and casino company; Norwegian Cruise Line, the cruise line operator; Claire's Stores, the retailer of costume jewelry; and Realogy, the real estate franchisor.
  In August 2006, Apollo launched a $2 billion publicly traded private equity vehicle in Europe, AP Alternative Assets (ENXTAM:AAA). The IPO of this new vehicle followed in the footsteps of Kohlberg Kravis Roberts, which raised $5 billion for its KKR Private Equity Investors vehicle in May 2006. Apollo initially attempted to raise $2.5 billion for the public vehicle but fell short when it offered the shares in June, raising only $1.5 billion. Apollo raised an additional $500 million via private placements in the weeks following that sale.
  Between 2006 and 2007, as the private equity industry expanded, several of the largest private equity firms, most notably The Blackstone Group and Kohlberg Kravis Roberts, announced plans to realize value from their firms through the sale of shares in the public equity markets. Apollo Management chose a different path and completed a private placement of shares in its management company in July 2007. By pursuing a private placement rather than a public offering, Apollo was able to avoid much of the public scrutiny applied to Blackstone and KKR. In November 2007, Apollo was able to realize additional value from the sale of a 9% ownership interest in its management company to the Abu Dhabi Investment Authority (ADIA). Ultimately, in April 2008, Apollo filed with the U.S. Securities and Exchange Commission (SEC) to permit some holders of its privately traded stock to sell their shares on the New York Stock Exchange. That same year, the firm opened an office in India, marking their first push into Asia.
  As the deterioration of the financial markets worsened into 2008, Apollo saw several of its investments come under pressure. Apollo's 2005 investment in the struggling US retailer Linens 'n Things suffered from a significant debt burden and softening consumer demand. In May 2008, Linens filed for bankruptcy protection, costing Apollo all of its $365 million investment in the company. At the same time, Apollo's investment in Claire's, Realogy and Harrah's Entertainment came under pressure. Apollo responded to its investment difficulties by seeking to exchange a portion of the existing debt at Harrah's and Realogy to more favorable securities. At Claire's, Apollo exercised its "PIK toggle" option to shut off cash interest payments to its bondholders and instead issue more debt, in order to provide the company with additional financial flexibility.
  In December 2008, Apollo completed fundraising for its latest fund, Apollo Investment Fund VII, with approximately $14.7 billion of investor commitments. Apollo had been targeting $15 billion, but had been in fundraising for more than 16 months, with the bulk of the capital raised in 2007.
  In December 2009, it was announced that Apollo would acquire Cedar Fair Entertainment Company shares and the company would be become private underneath the management group. The deal includes a cash payment of $635 million and assumed debt which gives the transaction a value of $2.4 billion. It was later announced in April 2010 that the deal was pulled due to poor shareholder response.
caption: Apollo lost its investment in retailer Linens 'n Things with the company's 2008 bankruptcy[58]
exif: {"Image Make": "Canon", "Image Model": "Canon EOS DIGITAL REBEL XTi", "Image Orientation": "Horizontal (normal)", "Image XResolution": "72", "Image YResolution": "72", "Image ResolutionUnit": "Pixels/Inch", "Image DateTime": "2008:11:24 15:49:47", "Image YCbCrPositioning": "Co-sited", "Image ExifOffset": "192", "Thumbnail Compression": "JPEG (old-style)", "Thumbnail XResolution": "72", "Thumbnail YResolution": "72", "Thumbnail ResolutionUnit": "Pixels/Inch", "Thumbnail JPEGInterchangeFormat": "5894", "Thumbnail JPEGInterchangeFormatLength": "6414", "EXIF ExposureTime": "1/125", "EXIF FNumber": "14", "EXIF ExposureProgram": "Aperture Priority", "EXIF ISOSpeedRatings": "100", "EXIF ExifVersion": "0221", "EXIF DateTimeOriginal": "2008:11:22 14:54:49", "EXIF DateTimeDigitized": "2008:11:22 14:54:49", "EXIF ComponentsConfiguration": "YCbCr", "EXIF ShutterSpeedValue": "228255/32768", "EXIF ApertureValue": "249519/32768", "EXIF ExposureBiasValue": "-1/3", "EXIF MeteringMode": "Pattern", "EXIF Flash": "Flash did not fire, compulsory flash mode", "EXIF FocalLength": "24", "EXIF FlashPixVersion": "0100", "EXIF ColorSpace": "sRGB", "EXIF ExifImageWidth": "3888", "EXIF ExifImageLength": "2592", "Interoperability InteroperabilityIndex": "R98", "Interoperability InteroperabilityVersion": "[48, 49, 48, 48]", "EXIF InteroperabilityOffset": "5770", "EXIF FocalPlaneXResolution": "3888000/877", "EXIF FocalPlaneYResolution": "432000/97", "EXIF FocalPlaneResolutionUnit": "2", "EXIF CustomRendered": "Normal", "EXIF ExposureMode": "Auto Exposure", "EXIF WhiteBalance": "Manual", "EXIF SceneCaptureType": "Standard"}