By
Tokoni Uti
January 23rd, 2024
Whatever the challenges of crypto may be currently, blockchain continues to gain increased recognition among investment firms looking to leverage its potential.
Asset manager Apollo Global Management Inc. has announced the launch of an investment vehicle using Figure’s platform.
The investment vehicle will be based on the blockchain, Provenance, and expand the asset manager’s ongoing partnership with Figure. The duo’s partnership dates back to mid-2021 when Apollo and Figure affiliates agreed to collaborate on multiple blockchain initiatives.
Specifically, Apollo and Figure agreed to find practical ways to incorporate the Provenance blockchain into the investment lifecycle. Suggested projects included on-chain fund listing, asset securitization, and the launch of digital marketplaces.
The current launch of the investment cycle is the latest innovation based on that partnership. According to Figure CEO, Mike Cagney, the fund will form a part of Apollo’s digital asset strategy. Beyond the investment vehicle, Apollo is also working with Figure on mortgage loan origination and transfers, and securitization.
According to Figure, the investment will enjoy its universal passport features for KYC purposes. This information will be stored on-chain and made available across various funds. “It’s the beginning of what we think will be a systemic trend of funds migrating onto the blockchain,” Cagney noted
Apollo Secures $2.4 billion for Credit Offerings
Meanwhile, Apollo also raised $2.4 billion in commitments for its Accord+ fund. The funds will allow the asset manager to invest in several asset classes from across its Credit platforms, including the purchase of some of the $43 billion Hung Bank loans. It will also be used to buy secured debt offerings, private financings, and structured credits.
Since establishing the Accord strategy, Apollo has now raised $11 billion in commitment with about $4.5 of that coming in the past year. The Accord+ fund builds on the firm’s experience and record managing its Accord strategy. According to Apollo Partners Chris Lahoud and Tristram leach, “Accord+ is designed to provide investors with an efficient, streamlined offering that harnesses the depth and breadth of expertise resident within Apollo’s Credit platform.”
Investment Firms Leveraging on Blockchain
Whatever the challenges of crypto may be currently, blockchain continues to gain increased recognition among investment firms looking to leverage its potential.
Much like Apollo, many investment firms are considering using blockchain to improve investment offerings. For instance, Hamilton has now tokenized three of its funds in conjunction with Securitize. Also, KKR is considering doing the same on the Avalanche blockchain.