S3: Sponsor and Secondary Solutions

Secondaries have become a core allocation for modern private market portfolios — they can offer vintage and manager diversification, and the potential for attractive risk-adjusted returns and more consistent capital distributions.

Apollo today announced the final close of Apollo S3 Equity and Hybrid Solutions Fund I (“ASEHS” or the “Fund”), the flagship equity secondaries drawdown strategy of Apollo’s Sponsor and Secondary Solutions (S3) platform, with approximately $5.4 billion in commitments. 

Apollo announced the launch of Apollo S3 Private Markets Fund (“ASPM US”) and Apollo S3 Private Markets Lux (“ASPM Lux,” together with ASPM US, “ASPM”), products designed to provide investors with turnkey solutions to access diversified portfolios of multi-asset secondary investments across private markets. 

Innovation has helped to destigmatize GP-led transactions, establishing the practice as a mainstream liquidity management tool for GPs today. In this paper, we explore how GP-led deals can offer concentrated exposure to high-quality managers and assets, compounding the overall advantages of secondary strategies.

Private-equity secondaries have developed into a core alternatives allocation for many investors. Led by the expanding opportunity in GP-led secondaries and heightened liquidity needs, we believe the secondaries market for PE will double or triple in size in the next five years.

Today, investors face a unique and challenging macroeconomic environment, defined by tightening monetary and financial conditions, inflation and volatility. Against this uncertain backdrop, we believe that there will be an increased desire for liquidity and that private market secondaries are poised to offer flexible capital and creative solutions to both LPs and GPs.