Apollo Acquires Bridge Investment Group in $1.5B Deal

Apollo Global Management is taking Bridge Investment Group private in a $1.5B stock deal, doubling down on multifamily and industrial real estate.

Jordan B.
February 25, 2025

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Good morning. Apollo Global Management is acquiring Bridge Investment Group in a $1.5B stock deal, strengthening its position in real estate and intensifying competition with Blackstone and Brookfield.

Today’s issue is brought to you by Pacaso.

🔥 This Week on No Cap Podcast 🔥 Jack and Alex sit down with real estate icon Bob Knakal from BK Real Estate Advisors about integrating AI into the industry—covering prospecting, deal-closing, and data analysis.

Market Snapshot

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mergers & acquisitions

Apollo’s $1.5B Bridge Deal Doubles Down on Real Estate

Apollo Global Management is acquiring Bridge Investment Group in a $1.5B all-stock deal, nearly doubling its real estate assets under management (AUM) to $110B.

Filling the gaps: Historically focused on credit and private equity, Apollo has trailed Blackstone and Brookfield in real estate, managing $77B in debt and equity. Bridge, with $50B in assets, strengthens Apollo’s position, particularly in niche sectors like property loans and second-hand fund stakes.

By the numbers: Bridge shareholders will receive 0.07081 shares of Apollo stock per share, valuing the company at $11.50—45% above its pre-deal price. The acquisition aligns with Apollo’s goal of reaching $1.5T in AUM by 2029.

Power play: The deal adds 55K apartment units to Apollo’s portfolio, expanding its footprint in affordable, senior, and single-family rentals. Rental housing economist Jay Parsons highlighted Bridge’s strong asset management team as a key addition.

Trending: This move follows Apollo’s $6B acquisition of Argo Infrastructure Partners and Ares’ $5.2B purchase of GLP Capital Partners' international arm. With PE firms leveraging their stock for expansion, expect more consolidation in real estate as the market rebounds.

➥ THE TAKEAWAY

Why it matters: Apollo isn’t just buying assets; they’re acquiring expertise. The PE firm is betting on a property market rebound while closing the gap with its biggest competitors. As private equity giants continue to scale up, more high-profile deals are likely to follow.

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✍️ Editor’s Picks

Fresh funding: Real estate investment management platform InvestNext secured $15M in Series B funding led by Beringea. InvestNext will use the funds to accelerate platform development. (sponsored)
Winding down: Blackstone is pulling the plug on Home Partners of America after years of expansion in the single-family rental market.
Florida taxes: Eliminating property taxes in Florida could more than double the state's sales tax to 12%, straining consumers and local government budgets, a new report warns.
Fire aid: Gov. Gavin Newsom is seeking $40B in federal disaster relief for Los Angeles County’s wildfire recovery, but Trump allies are pushing back.
Marina buy: Blackstone Infrastructure is acquiring Safe Harbor Marinas for $5.7B, adding 138 U.S. and Puerto Rico locations to its portfolio.

🏘️ MULTIFAMILY

Housing starts: 2024 marked the 11th consecutive year with more than 1M housing starts, with a notable shift in focus to multifamily and BTR.
Denver development: Thompson Thrift bought seven acres in Wheat Ridge for a 255-unit complex amid Denver’s cooling rental market.
Sheepshead: ABS Partners secured city approval for a 380-unit, mixed-use project in Sheepshead Bay after striking a unique lease-to-own deal.
Texas zoning: Lawmakers propose overriding local rules to fast-track office-to-residential conversions amid a housing shortage.
AI in Multifamily: Big landlords are embracing AI to cut costs, widening the tech gap with smaller owners.

🏭 Industrial

IOS expansion: Alterra IOS acquired 16 industrial outdoor storage properties across 15 metro areas in a sale-leaseback deal with TruGreen, strengthening its national footprint in the fast-growing sector.
Port vacancies: Despite record cargo traffic, the Port of New York and New Jersey’s vacancy rate hit 11.5% amid rising supply and infrastructure challenges.

🏬 RETAIL

SF mall auction: Lenders delayed the foreclosure auction of San Francisco Centre for a third time, as the mall’s value has plummeted by $1 billion amid tenant departures.
Liquidation: Craft retailer Joann will close all 800 stores as part of a bankruptcy sale, marking another major retail collapse.
Low fat: Starbucks will lay off 1,100 corporate employees as CEO Brian Niccol streamlines operations in his turnaround push.

🏢 OFFICE

San Diego foreclosure: San Diego’s $1.3B Campus at Horton faces foreclosure over $351M in unpaid debt after the city backed out of office space talks.
Nashville conversion: Tourbineau Real Estate Partners and Realm acquired Parkway Towers for $12.5M, planning to convert the distressed Nashville office building into residences or a hotel.