A news release said the deal allows Apollo to diversify its product offering by adding Lighthouse’s expertise in hedge fund and managed account products to its existing suite of investment strategies. Lighthouse’s proprietary managed accounts program has approximately 90 distinct managed account investments across the full range of hedge fund strategies.
As part of the transaction, Apollo will make a $75 million convertible note investment into HFA Holdings. The proposed investment in HFA is a strategic position for Apollo, being undertaken at the parent company level, outside of Apollo’s investment funds, according to the announcement. Both firms will continue to operate and be managed independently.