Apollo Group Holdings Limited Announces a Strategic Investment by Alchemy

Transaction Overview

Apollo Group Holdings Limited (“Apollo”) has announced a $90 million investment by Alchemy Special Opportunities Fund IV LP (“Alchemy”) to support growth in Apollo’s hybrid model

  • Alchemy’s investment will create a joint venture with existing investors

Apollo, which became a Managing Agent in 2015, is an independent specialist (re)insurer, with a team of talented and experienced professionals operating across a number of specialty lines

  • Apollo has continued to attract top-level Management talent in 2021 including; James Slaughter (CUO), formerly of Liberty Mutual, and Hayley Spink (COO), formerly of Lloyd’s
  • Apollo’s hybrid model provides first class underwriting and syndicate management services for third parties alongside underwriting on its own balance sheet
  • Alchemy’s investment in Apollo allows for the acceleration of Apollo’s roll-out in augmented underwriting and in its Strategic Partner Syndicates (“SPS”) division
  • Total stamp capacity across Apollo managed Syndicates is ~£410mm for the 2021 Year of Account(a)
    • Lloyd’s Syndicate 1969 and the specialty sharing economy-focused ibott Syndicate 1971

Alchemy is a private equity firm that invests across Europe to achieve superior risk adjusted returns

  • Alchemy was founded in 1997 and has invested over £4bn since that date
  • Alchemy targets special situations across Europe and employs a value investing approach based on fundamental proprietary research and comprehensive due diligence

TigerRisk Capital Markets & Advisory Role

TCMA is acting as exclusive financial advisor to Apollo; key transaction steps led by TCMA include:

  • Developing a robust and comprehensive financial model
  • Preparing marketing documentation and running a competitive process
  • Introducing Alchemy as an investor to the process
  • Managing an organised and efficient due diligence process
  • Developing a bespoke transaction structure to ensure 2022 Funds at Lloyd’s obligations are met in a timely manner
  • Offering insights around and negotiating key transaction terms and conditions
  • Providing objective advice and acting as a confidant to Apollo throughout the process