Apollo Global Management Inc. has agreed to acquire Bridge Investment Group Holdings Inc. for approximately $1.5 billion in an all-stock deal, marking the asset manager’s latest move to expand its real estate portfolio.
Under the terms of the deal, Apollo will offer 0.07081 of its own stock for each Bridge share held, which values Bridge at roughly $11.50 per share. Bridge, based in Salt Lake City, manages around $50 billion in real estate assets and serves institutional and wealth clients.
This acquisition reflects Apollo’s strategy to grow its wealth business and expand its real estate capabilities. Bridge, one of the largest private equity real estate managers with $22 billion in fee-paying assets under management, will operate as a standalone platform within Apollo’s asset-management business. As part of the deal, Robert Morse, Bridge’s executive chairman, will join Apollo as a partner and head of its real estate equity franchise.
The move is seen as a sign that major asset managers are optimistic about the future of commercial real estate, particularly after the pandemic-fueled downturn. Last month, Blackstone Inc. President Jon Gray noted that the global office market had likely reached its bottom, and valuations were set to rebound.
Bridge, founded in 2009, invests in a variety of real estate and related assets, including renewable energy infrastructure and mortgage-backed securities. The firm went public in 2021, reaching a market capitalization of nearly $2.8 billion at its peak, though its shares have since seen a decline.
The acquisition is expected to close in the third quarter. This follows Apollo’s recent announcements of other acquisitions, including a deal to purchase Argo Infrastructure Partners for $6 billion in assets and the acquisition of collateralized loan obligation manager Irradiant Partners LP by its affiliate, Redding Ridge Asset Management.
