Apollo Global Management Provides $1 Billion Hybrid Capital to Abu Dhabi's Aldar Properties in Region's Largest Corporate Private Placement
Apollo Global Management (NYSE: APO) announced Feb. 20 that Apollo-managed funds have invested $1 billion in subordinated hybrid notes issued by Aldar Properties PJSC, a UAE-based real estate developer and investment manager headquartered in Abu Dhabi. The transaction marks Apollo's fifth investment in Aldar since 2022 and the largest corporate hybrid private placement in the region, bringing aggregate commitments between the two firms to approximately $2.9 billion.
Transaction Details and Strategic Purpose
The $1 billion investment takes the form of subordinated hybrid notes, a structure that sits between senior debt and equity in the capital stack. According to Apollo, proceeds are intended to support Aldar's balance sheet flexibility, landbank replenishment, expansion of its develop-to-hold portfolio, and strategic acquisitions. Apollo characterized the transaction as among the largest-ever foreign direct investments in Abu Dhabi's private sector.
Apollo Partner Jamshid Ehsani said: "Completing our fifth investment with Aldar speaks directly to Apollo's ability to structure flexible capital solutions that are responsive to the needs of both our corporate clients and our investors. Since our first transaction in 2022, Aldar has gone from strength to strength, with robust performance and portfolio expansion overseen by an experienced management team. This latest investment reflects Apollo's continued commitment to Abu Dhabi and the broader region."
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, said: "This transaction highlights the strength of our long-standing partnership with Apollo and the continued confidence of major institutional investors in Aldar's strategy, financial management and growth trajectory. The issuance provides Aldar with long-term, flexible capital that enhances balance sheet resilience and supports our ability to capitalise on attractive opportunities across our core markets. Importantly, it elevates Aldar's share of stable, recurring income generated by AIP's high quality, diversified portfolio, which will continue to expand through acquisitions and our substantial develop-to-hold pipeline that is now valued at close to $5 billion."
A Growing Partnership in Abu Dhabi
The February 2026 transaction is the latest in a series of capital commitments between Apollo and Aldar. Apollo's first investment in Aldar dates to 2022. The current transaction brings cumulative commitments to approximately $2.9 billion across five transactions. Details of the individual prior transactions, including sizes and structures, were not disclosed in the announcement.
The current transaction is part of Apollo's High Grade Capital Solutions business, which the firm describes as a capital partner to global companies across multiple sectors.
Aldar's Develop-to-Hold Portfolio and Growth Agenda
Aldar Properties is a UAE-based real estate developer and investment manager. The company's investment arm, Aldar Investment Properties (AIP), holds a diversified portfolio of income-generating assets. Falaknaz noted that the develop-to-hold pipeline is now valued at close to $5 billion, and that proceeds from the hybrid notes issuance will support further expansion of that portfolio through both acquisitions and new development activity.
No specific property addresses, asset-level square footage figures, or capitalization rates were disclosed in connection with the transaction. The financing is structured at the corporate level rather than being tied to any individual asset or development project.
Apollo's High Grade Capital Solutions Platform
The Aldar deal is the latest transaction for Apollo's High Grade Capital Solutions business, which focuses on providing flexible, long-dated capital to corporate borrowers globally. The transaction is also among the largest-ever foreign direct investments in Abu Dhabi's private sector, according to Apollo.
The hybrid notes structure gives Aldar access to long-term capital without the dilution associated with equity issuance, while the subordinated nature of the notes allows the company to maintain senior debt capacity for asset-level financing. Apollo's willingness to provide subordinated capital at scale — now totaling approximately $2.9 billion across five transactions — reflects the firm's ongoing relationship with Aldar since 2022.
The transaction was announced Feb. 20, 2026.