Apollo Management LP is proposing to offer up to $50 million of shares in an initial public offering on the New York Stock Exchange, the private equity giant said in a regulatory filing on Monday.
New York-based Apollo previously announced plans to move its shares — currently traded on a private exchange — to the NYSE, but had not previously proposed offering shares in the listing. The offering would represent only a small percentage of the overall company.
The listing will see it follow rival Blackstone Group (BX.N) in becoming one of the few publicly traded private equity firms. Blackstone, the trailblazer, went public in 2007, and rival Kohlberg Kravis Roberts & Co (KKR.AS) will soon follow after filing for its own long-awaited NYSE listing earlier this month.
Founded by former Drexel Burnham Lambert banker Leon Black in 1990, Apollo has assets under management of $53.6 billion which includes investments in companies such as gaming company Harrah’s Entertainment Inc and real estate company Realogy.
Apollo said in a statement that offering the shares would give existing institutional shareholders an opportunity to sell if they desired. It plans to use proceeds from the offering for “general corporate purposes and to fund growth initiatives.
Apollo’s management are not going to sell in the offering, the company said.
Apollo originally filed with the U.S. Securities and Exchange Commission in April 2008 — before the market slid — to list its privately-traded shares on the NYSE.
In November, it revitalized those plans with a new filing. Founder Leon Black previously said he is hoping to be listed on the NYSE by the end of the first quarter of 2010.
The filing also gave details of compensation for the last year.
Black received $787,391 in compensation during the year, according to the filing, which was made up of $100,000 salary and a large part of the remainder carried interest. Carried interest is typically the 20 percent that private equity executives take from the profit made on their funds, after compensating their investors.
Henry Silverman, chief operating officer, received a total compensation of $7 million, while James Zelter, managing director of capital markets received $12 million, the filing said.
The filing also gave updated financial information for Apollo for 2009. Economic net income was $581 million compared to a loss of $611 million the previous year, it said.
ENI strips out one-off items, such as the costs associated with raising a new fund. It is the measure which private equity firms prefer to report and which analysts follow.