Bridge Investment Group’s stockholders and subsidiary unit holders are set to receive 0.07081 shares of Apollo stock for each of their shares, valuing each share at $11.50. This transaction marks a significant premium of about 45% over Bridge’s last closing price, leading to a rise in Bridge’s shares by 34% in premarket trading.
Apollo Global Management sees this acquisition as a strategic step to enhance its real estate equity and credit platforms. By integrating Bridge, Apollo will gain immediate scale and bolster its origination capabilities. Bridge’s substantial asset management experience, backed by $50 billion in assets and over 300 dedicated professionals, aligns with Apollo’s ambitious growth objectives.
Founded in 2009 and going public in 2021, Bridge Investment Group has established itself as a formidable player in the real estate investment industry. This acquisition is expected to further solidify Apollo’s position, targeting $1 trillion in managed assets by 2026 and $1.5 trillion by 2029, as outlined in its recent investor day discussions.
Post-acquisition, Bridge will continue to function as an independent platform within Apollo’s structure. The transition will also see Bridge’s Executive Chairman, Bob Morse, join Apollo as a partner and head of its real estate equity division. This move signals Apollo’s commitment to not only expanding its asset base but also enhancing leadership within its real estate domain.
Apollo’s acquisition of Bridge Investment Group signifies a strategic leap towards bolstering its real estate portfolio. With Bridge’s established presence and Apollo’s aggressive growth targets, the merger promises to create a robust platform poised for future success.
