New York-based investment manager Apollo Global Management, LLC (APO), through its funds managed by its affiliates, entered into a partnership with Tulsa-based Zenergy, Inc. The partnership – Zenergy, LLC is effective from May 1, 2014.
The partnership that aims to make investments in acquiring and developing upstream and midstream oil and gas assets was formed with a total committed capital of $755 million. Of this, Apollo Global injected $700 million through its funds managed by affiliates while Zenergy made the remaining investment of $55 million.
The partnership will be focused on assets in areas including the Mid-Continent, Texas and Arkansas.
Founded in 1980, Zenergy, a privately held company in the oil and gas exploration and production space, is engaged in the upstream and midstream oil and gas business.
Apollo Global’s partnership deal with Zenergy comes in line with its investment goals. Further, the latest deal is its second in the energy space in recent weeks. Notably, on May 28, Apollo Global announced a partnership with CSV Midstream Solutions Corporation to construct and operate midstream facilities in the Western Canadian Sedimentary Basin. In order to finance the plan, Apollo Global through its managed funds made $500 million equity investments in CSV Midstream.
These energy deals reflect Apollo Global’s interest to capture the growing U.S energy market. Notably, the U.S. energy market’s investment is expected to be more than $700 billion over the upcoming two decades. This paves the way for companies like Apollo Global to make lucrative investments in the sector.
As an investment management firm, Apollo has grown through meaningful acquisitions, strategic alliances and divestures. The company’s interest lies not only in the energy sector but in varied spaces including chemicals, commodities, mining, agriculture, financial services and manufacturing. We look forward to the company’s greater involvement in such attractive deals that augur well for its growth.
Apollo Global currently carries a Zacks Rank #3 (Hold). Some other stocks in this space worth considering include Cohen & Steers Inc. (CNS), Woori Finance Holdings Co., Ltd. (WF) and Brookfield Asset Management Inc. (BAM). Both Cohen & Steers and Woori Finance carry a Zacks Rank #1 (Strong Buy) while Brookfield Asset Management holds a Zacks Rank #2 (Buy).
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