Apollo, Keppel Partner on $1.5B Offshore Energy Fund

Apollo Global Management is injecting significant capital into the offshore energy sector through a strategic alliance with Singapore-based Keppel Ltd. Funds managed by Apollo have committed $1.5 billion to Keppel's newly established offshore energy asset fund, signaling a robust commitment to the region's evolving energy infrastructure. This substantial investment underscores Apollo's strategy of deploying its extensive capital base to support critical infrastructure development globally.

The partnership, which sees Apollo Funds investing in Keppel Offshore Fund, LP, is structured to leverage Keppel's deep expertise in managing and operating offshore energy assets. This collaboration marks a notable transaction within Southeast Asia, a region experiencing heightened activity in its offshore energy markets. Factors such as high asset utilization rates and sustained demand for energy resources are driving this growth, making it an opportune moment for such strategic capital deployment.

Jamshid Ehsani, a Partner at Apollo, highlighted the significance of this venture, stating, "This collaboration with Keppel exemplifies the increasing global appetite for sophisticated capital solutions that align with strategic objectives." He further emphasized Keppel's established position as a leading asset manager and infrastructure operator in the region, noting Apollo's role in supporting Keppel's mission to bolster global energy security by utilizing Apollo's substantial and flexible capital resources and its proficiency in structuring complex financial arrangements.

Loh Chin Hua, CEO of Keppel, expressed enthusiasm for the alliance, welcoming Apollo as a key investment partner. "We are confident that the prevailing long-term market trends present compelling opportunities for attractive risk-adjusted returns for our clients," Loh stated. He added that Keppel anticipates working closely with Apollo to expand the fund's reach and contribute to meeting worldwide energy security requirements, reinforcing the mutual benefits of the partnership.

This initiative aligns with Apollo's broader strategy of forging partnerships with prominent regional entities. The firm has a proven track record, having provided over $100 billion in bespoke capital solutions to major corporations since 2020. By combining its financial structuring acumen and permanent capital with Keppel's deep market penetration and operational capabilities in the Asia Pacific, Apollo aims to originate and deliver innovative financial products tailored to the region's dynamic corporate needs.

The transaction is contingent upon the satisfaction of standard closing conditions, including the necessary regulatory approvals. SMBC Group is providing advisory and placement agent services to the Apollo Funds. Legal counsel for Apollo Funds is being provided by Latham & Watkins, while Milbank LLP is acting as investor's counsel. Keppel Ltd. is receiving legal counsel from Clifford Chance.