Apollo Global Management (NYSE: APO) announced certain affiliate-led funds drove the purchase of $1.75 billion of convertible preferred stock in Albertsons Companies. The target is one of the largest food and drug retailers in the United States. The investment will represent approximately 17.5% pro forma equity ownership of Albertsons on an as-converted basis.

The transaction will likely close by June 15.

Albertsons Companies and Apollo

The transaction was led by Apollo’s Hybrid Value business in partnership with the Credit platform and drew upon Apollo’s depth of experience in the sector. It is the third sizable investment made by Hybrid Value in the past month.

Apollo also announced that they had closed on approximately $1.75 billion in commitments for its dislocated credit offering, Apollo Accord Fund III B. The Fund is the latest investment vehicle in its flagship Accord series, launched in 2017. Commitments for the fund were raised over approximately 8 weeks, driven by institutional demand for strategies that invest amid the volatility and market conditions seen in the first quarter of 2020.

Apollo’s Accord strategy focuses on acting as a liquidity provider during times of broad-based market stress by purchasing high-quality, secured cross-asset credit risk. Accord is one of several strategies the Firm has designed to address opportunity sets across dislocation, distressed, origination, and capital solutions.

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