Private Equity: Apollo’s Tech Data Invests $750M to Fast-Track Digital Transformation

PE giant Apollo Global Management has committed to funding a $750 million investment by Tech Data.  Tech Data is a global technology company operating in over 100 countries with more than 125,000 customers.  Apollo’s goal is to diversify its investments in the technology and data industry and to ultimately improve technology in coming years.  Tech Data will now have the resources to digitally transform business.

According to Apollo Partner Robert Kalsow-Ramos, “Apollo sees Tech Data as a strong platform for meaningful growth and further diversification, and we are committed to supporting investments that build on this vision.”  Evidently, Apollo is committed to Tech Data’s digital business model.

More on Tech Data and Apollo

Tech Data provides a multitude of services ranging from credit and education to technical and installation services.  Further, Tech Data has 45 years of experience in IT distribution and employs more than 14,000 people worldwide.  It is currently number 90 on the Fortune 500 ranking list.  

Apollo is a major private equity firm with over $315 billion in AUM as of March 2020.  Additionally, Apollo’s private equity funds have owned more than 150 companies since it began.  Apollo invests in a diverse portfolio ranging from chemical and natural resources to telecom and technology.  One cornerstone feature of Apollo is its credit business model.  This model focuses on bottom-up credit analysis and distressed investments. 

Future Potential Risks

Apollo’s investment in Tech Data is not risk-free as the uncertainty of external factors is always possible.  The companies must now play a critical role in mitigating any potential economic or technological risks that may arise.  With a volatile market, this should be a top priority.