Apollo Global Management Inc. is acquiring United Living, a UK property maintenance and construction company focused on the affordable housing sector, as the private-equity firm steps up investments dedicated to social responsibility.
The deal is the first in the UK to buy Apollo's $1 billion impact fund, which has made four other investments globally. Financial terms were not disclosed Tuesday but people with knowledge of the transaction said it valued the Kent-based company at more than 300 million $370 million, excluding those engaged in education, health, safety and climate sustainability. The fund seeks opportunities in developed markets with experience and investment expertise.
There are already a number of firms that are focused on emerging markets and we are rooting for all of them, Reiss said. We have a sense of humility in this so we want to focus on markets that we are best positioned to succeed financially and also have the right impact. Even in the richest nations, people are struggling to heat their homes or eat a full meal. In response to demand from institutions, Apollo joins Brookfield Asset Management Ltd. KKR Co., TPG Inc. and Bain Capital to raise funds and deploy capital into socially responsible investing. Investor allocations to impact investing, which focuses on specific environmental, social or governance outcomes instead of just screening for ESG risks, have skyrocketed to more than $1 trillion, according to the Global Impact Investing Network.
Unlike some Wall Street peers, Apollo is eager to invest in later-stage, mature companies like United Living where capital is vanishing quickly, Reiss said. The fund currently has more than 50% of its assets and Apollo continues to concentrate on finding new investments and managing its existing portfolio, she said.
With a focus on increasing residential access to underserved communities, United Living operates infrastructure, property services, and new homes units. In the year ending March 31, the company generated revenue exceeding 530 million and employs more than 1,000 employees.
The UK deal followed the acquisition of Miller Homes, a homebuilder in England and Scotland, for more than 1 billion pounds.
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