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Apollo Global busy on private equity capital deployment despite volatility in Q1

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Apollo Global busy on private equity capital deployment despite volatility in Q1

'sfirst quarter was one of the busiest periods for capital deployment in thealternative asset manager's history.

Co-founderand Senior Managing Director Josh Harris said during an earnings conferencecall that Apollo and its affiliates put nearly $8 billion in aggregate to workacross a range of investments during the quarter. The first quarter was rathervolatile across multiple markets as equities retreated and then rebounded andcredit spreads first widened and then tightened as the period went on. Amidthat volatility, Apollo was "very active" in the private equityspace, said Harris, adding that when traditional capital sources in thefinancial market "seize up," this can play to the company'sadvantage. While getting deals over the finish line can be tougher as capitaldries up, Harris explained that such an environment can lead to more attractiveoutcomes.

Harrisconceded that the current private equity market is potentially the toughest hehas ever experienced but pointed out that Apollo still managed to ink someoutsized transactions during the period. The largest of those deals was theacquisition of ADTby an affiliate of certain funds managed by Apollo, May 2. in February, the ADTpurchase valued the home security provider at about $7.0 billion.

Thealternative asset manager also during the first quarter announced for an affiliate to buyupscale grocer The Fresh Market for about $1.4 billion. Thedeal in late April.

Apolloappears to have plenty of room for additional deployment as it ended the firstquarter with $25.6 billion in total dry powder. According to an SEC , the company had $17.0 billionin private equity-related uncalled capital at quarter-end.