Alteri Investors and Apollo Funds launch second European retail sector investment vehicle
Specialist retail sector investor Alteri Investors (Alteri) has launched its second investment vehicle, Alteri Investors II (Alteri II) with the backing of funds and accounts managed by affiliates of Apollo Global Management.
Alteri was launched in late 2014, as a joint venture between Apollo Funds and Alteri management. With in-house operational expertise and a remit to source investment opportunities across the European retail sector, Alteri has built a broad portfolio of businesses. It has had particular success in Germany, including CBR Fashion, one of Germany’s leading womenswear businesses, and leading multi-channel retailer Versandhaus Walz, which has successfully undergone a comprehensive turnaround. The UK’s leading rent-to-own specialist Brighthouse remains the other current investment within the existing portfolio. Exited investments cover a range of equity, debt and direct lending transactions across multiple retail sectors and Western European geographies, notably in Germany, Switzerland, the Netherlands and the UK.
Following Alteri’s successful first venture, Apollo Funds have committed more than double the amount of capital to Alteri II. Additionally, Alteri II may have access to additional funds to co-invest in larger transactions with funds managed by Apollo, enabling it to target businesses with sales of up to c.GBP3 billion. Alteri II will continue to invest in European retailers with sales in excess of GBP100 million, targeting a broad range of opportunities from performing businesses facing structural or stakeholder issues, to companies which require fundamental financial and operational transformation.
Alteri II is expected to expand the Alteri platform’s geographic footprint with greater emphasis on the Spanish and Italian markets, alongside its existing core markets of the UK, DACH, Benelux and Nordic regions.
Alteri Founder and CEO Gavin George says: “We are extremely excited about the launch of our second investment vehicle. We believe that Alteri’s unique combination of financial firepower and retail expertise can help management teams unlock the potential in their businesses. With the European retail market going through a truly transformational period we believe the time is right to launch our second venture. With continued backing from Apollo Funds, we look forward to an even more successful future.”
Rob Ruberton, Apollo Partner and co-head of the firm’s Hybrid Value strategy, says: “We are delighted with Alteri’s performance to date, which has exceeded our expectations and delivered over 2x returns on capital. Doubling our capital commitment underlines our confidence in Gavin and the Alteri team’s ability to source and execute profitable, downside-protected investments in the retail sector.”