ebook img

I Confirm - Apollo Alternative Assets PDF

192 Pages·2006·1.09 MB·English
by  
Save to my drive
Quick download
Download
Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.

Preview I Confirm - Apollo Alternative Assets

PROSPECTUS 104,950,000 Common Units AP Alternative Assets, L.P. Managed by Apollo Alternative Assets, L.P. Thisisanintroductionofallofthe104,950,000commonunitsofAPAlternativeAssets,L.P.,alimited partnershipregisteredunderthelawsofGuernsey,tolistingandtradingonEurolistbyEuronext(“Eurolistby Euronext”),theregulatedmarketofEuronextAmsterdamN.V.(“EuronextAmsterdam”),underthesymbol“AAA”. WeexpectthatadmissionofourcommonunitstoEurolistbyEuronext,willbecomeeffectiveandthatdealingsinour commonunitswillcommenceonAugust8,2006.Thelistingfollowsourglobalprivateplacementandrelated transactionsandsubsequentissuancesinrespectofwhichweissuedanaggregateof104,950,000restricteddepositary units(“RDUs”),eachrepresentingonecommonunit.Non-U.S.holdersofourRDUsare,subjecttoconditions describedherein,entitledtoreceivecommonunits.U.S.holderswillcontinuetoholdRDUs.TheRDUswillnotbe listedonanysecuritiesexchange,willcontinuetobesubjecttotransferrestrictions,andwedonotexpectthatapublic marketfortheRDUswilleverdevelop.OurRDUsandtheunderlyingcommonunitsarenon-voting. Investinginour common unitsor the RDUsinvolves risks.See “RiskFactors” beginning onpage7. OurcommonunitsandtheRDUshavenotbeenandwillnotberegisteredundertheU.S.SecuritiesActof 1933,asamended(the“U.S.SecuritiesAct”)oranyotherapplicablelawoftheUnitedStates.Ourcommon unitsandtheRDUsmaynotbeofferedorsoldwithintheUnitedStatesortoU.S.persons,excepttopersons whoare(a)qualifiedpurchasers(asdefinedintheU.S.InvestmentCompanyActof1940,asamended(the“U.S. InvestmentCompanyAct”)andrelatedrules)and(b)either(1)qualifiedinstitutionalbuyersor(2)accredited investors.Foradditionaltransferrestrictions,see“CertainERISAConsiderations”and“Transfer Restrictions.” WehavegivenGoldmanSachsInternational,Citigroup,JPMorganandCreditSuissetheoptiontopurchase 11,250,000commonunitsfromourManagingGeneralPartnerattheinitialofferingpriceofourRDUsintheglobal privateplacementlessthecommissionpaidtotheseinstitutions,fromthedateoflistingonEurolistbyEuronextuntil 30daysfromsuchdate. DatedJuly31,2006 NOTICETOINVESTORS AboutthisProspectus Thisprospectushasbeenproducedsolelyinconnectionwithourapplicationforadmissionofourcommon unitstolistingandtradingonEurolistbyEuronext.Inmakinganinvestmentdecisionregardingourcommon unitsorRDUs,investorsmustrelyontheirownexaminationofus,includingthemeritsandrisksinvolvedinan investmentinourpartnership.GoldmanSachsInternational,Citigroup,JPMorganandCreditSuissemakeno representationorwarranty,expressedorimplied,astotheaccuracyorcompletenessoftheinformationinthis prospectus,andnothinginthisprospectusis,orshallberelieduponas,apromiseorrepresentationbythese institutions. ThisdocumentconstitutesaprospectusforthepurposesofArticle3ofDirective2003/71/ECofthe EuropeanParliamentandoftheCouncilandhasbeenpreparedinaccordancewithArticle3oftheDutchActon theSupervisionoftheSecuritiesTrade1995(Wettoezichteffectenverkeer1995),asamended,andtherules promulgatedthereunder.ThisdocumenthasbeenapprovedbyandfiledwiththeNetherlandsAuthorityforthe FinancialMarkets(AutoriteitFinanciëleMarkten). Weacceptresponsibilityfortheinformationcontainedinthisprospectus.Tothebestofourknowledge, havingtakenallreasonablecaretoensurethatsuchisthecase,theinformationcontainedinthisprospectusisin accordancewiththefactsanddoesnotomitanythinglikelytoaffecttheimportofsuchinformation. Youshouldassumethattheinformationappearinginthisprospectusisaccurateonlyasofthedateonthe frontcoverofthisprospectus,regardlessofthetimeofdeliveryofthisprospectusorofanyofferorsaleofour commonunitsortheRDUs.Ourbusiness,financialcondition,resultsofoperationsandprospectscouldhave changedsincethatdate.Weexpresslydisclaimanydutytoupdatethisprospectusexceptasrequiredby applicablelaw. RestrictionsonDistributionandSale Thisprospectusdoesnotconstituteorformpartofanyofferorinvitationtosellorissue,oranysolicitation ofanyoffertopurchaseorsubscribefor,anycommonunitsorRDUs,norshallit(oranypartofit)orthefactof itsdistribution,formthebasisof,orbereliedoninconnectionwith,anycontracttherefor.Thedistributionof thisprospectusincertainjurisdictionsmayberestrictedbylaw.Personsinpossessionofthisprospectusare requiredtoinformthemselvesaboutandtoobserveanysuchrestrictions. NoticetoEuroclearParticipants AnyparticipantoftheclearingandsettlementsystemoperatedbyEuroclearBankS.A./N.V.(“Euroclear Bank”)(the“Euroclearsystem”)thatholdscommonunitsintheEuroclearsystemwillbedeemedtohave representedtoandagreedwithusandEuroclearBankasaconditiontothecommonunitsbeingintheEuroclear systemtofurnishtoEuroclearBank(a)itstaxidentificationnumber,(b)noticeofwhetheritis(i)apersonwho isnotaUnitedStatesperson,(ii)aforeigngovernment,aninternationalorganizationoranywhollyowned agencyorinstrumentalityofeitheroftheforegoingor(iii)ataxexemptentityand(c)suchotherinformationas EuroclearBankmayrequestfromtimetotimeinordertocomplywithitsUnitedStatestaxreportingobligations andotherobligations.IfaparticipantintheEuroclearsystemfailstoprovidesuchinformation,EuroclearBank may,amongothercoursesofaction,blocktradesinthecommonunitsandrelatedincomedistributionsofsuch participant. NoticetoClearstreamParticipants AnyparticipantoftheclearingandsettlementsystemoperatedbyClearstreamBankingS.A. (“Clearstream”)(the“Clearstreamsystem”)thatholdscommonunitsintheClearstreamsystemwillbe deemedtohaverepresentedtoandagreedwithusandClearstreamasaconditiontothecommonunitsbeingin theClearstreamsystemtofurnishtoClearstream(a)itstaxidentificationnumber,(b)noticeofwhetheritis(i)a personwhoisnotaUnitedStatesperson,(ii)aforeigngovernment,aninternationalorganizationoranywholly ownedagencyorinstrumentalityofeitheroftheforegoingor(iii)ataxexemptentityand(c)suchother i informationasClearstreammayrequestfromtimetotimeinordertocomplywithitsUnitedStatestaxreporting obligationsandotherobligations.IfaparticipantintheClearstreamsystemfailstoprovidesuchinformation, Clearstreammay,amongothercoursesofaction,blocktradesinthecommonunitsandrelatedincome distributionsofsuchparticipant. NoticetoNIECParticipants AnyparticipantoftheclearingandsettlementsystemoperatedbyEuroclearNIEC(the“NIECsystem”) thatholdscommonunitsintheNIECsystemwillbedeemedtohaverepresentedtoandagreedwithusandNIEC asaconditiontothecommonunitsbeingintheNIECsystemtofurnishtoNIEC(a)itstaxidentificationnumber, (b)noticeofwhetheritis(i)apersonwhoisnotaUnitedStatesperson,(ii)aforeigngovernment,an internationalorganizationoranywhollyownedagencyorinstrumentalityofeitheroftheforegoingor(iii)atax exemptentityand(c)suchotherinformationasNIECmayrequestfromtimetotimeinordertocomplywithits UnitedStatestaxreportingobligationsandotherobligations.IfaparticipantintheNIECsystemfailstoprovide suchinformation,NIECmay,amongothercoursesofaction,blocktradesinthecommonunitsandrelated incomedistributionsofsuchparticipant. MarketStabilization Inconnectionwithadmission,wehaveappointedGoldmanSachsInternationalasstabilizationmanager. GoldmanSachsInternational,Citigroup,JPMorgan,CreditSuisse,oranyoftheiragents,mayover-allotoreffect transactionsthatstabilizeormaintainthemarketpriceofourcommonunitsatlevelsabovethosewhichmight otherwiseprevailintheopenmarket.Suchtransactionsmaycommenceonorafterthedateofcommencementof tradingonEurolistbyEuronextandwillendnolaterthan30daysthereafter.Suchtransactionsmaybeeffectedon EurolistbyEuronextintheover-the-countermarketorotherwise.Thereisnoassurancethatsuchstabilizationwill beundertakenand,ifitisundertaken,itmaybediscontinuedatanytime.See“DescriptionofourGlobalPrivate Placement-Stabilization”beginningonpage168. Forward-LookingStatements Thisprospectuscontainscertainforward-lookingstatements,includingstatementsregardingtargetreturns, basedonourbeliefs,assumptionsandexpectationsofourfutureperformance,takingintoaccountallinformation currentlyavailabletous.Thesebeliefs,assumptionsandexpectationscanchangeasaresultofmanypossible eventsorfactors,inwhichcaseourbusiness,financialcondition,liquidity,resultsofoperationsandactual returnsmayvary,andtargetreturnsmayberevised,materiallyfromthoseexpressedinourforward-looking statements.See“SpecialNoteRegardingForward-LookingStatements”beginningonpage36. ValuationandOtherData ThisprospectuscontainsvaluationdatarelatingtocertaininvestmentfundsmanagedbyApolloandrelated datathathasbeenderivedfromsuchfunds.Thisprospectusalsocontainscertaindatawhichhasbeenderived fromourmanagementrecordsrelatingtothefundsraisedfromtheglobalprivateplacementandrelated transactionsandsubsequentissuancesofRDUs,andtheinitialinvestmentofthosefunds.Noneofthisdatahas beenaudited. Whenconsideringthevaluationandrelateddatapresentedinthisprospectus,youshouldbearinmindthat thehistoricalresultsofthefundsthatApollohasmanagedorsponsoredinthepastarenotindicativeofthefuture resultsthatyoushouldexpectfromus,includingasaresultoftheimpactonouroverallresultsofourtemporary cashinvestments,non-privateequityandcapitalmarketsinvestments,andadditionalinvestments,whichmaybe material.See“SpecialNoteRegardingHistoricalPrivateEquityValuationandRelatedData”beginningonpage 37. ThestatementrelatingtotheperformanceofFundIVduringtheperiodfrom1998to2001whichissetoutin “Business—AboutApollo”andmadebyreferencetofiguresfromThomsonVentureEconomicshasbeensourced fromstatisticsobtainedfromThomsonVentureEconomicsinJuly2006relatingtotheperformanceofbuyout fundsof1998vintagegreaterthan$500millionasofDecember31,2005.Suchinformationhasbeenaccurately reproducedand,sofarasweareawareandareabletoascertainfrominformationpublishedbyThomsonVenture Economics,nofactshavebeenomittedwhichwouldrenderthereproducedinformationinaccurateormisleading. ii PRESENTATIONOFCERTAININFORMATION Wehavepreparedthisprospectususinganumberofconventions,whichyoushouldconsiderwhenreading theinformationcontainedherein.Unlessthecontextsuggestsotherwise,referencesto: • “we,”“us,”“our”and“ourpartnership”aretoAPAlternativeAssets,L.P.,aGuernseylimited partnership; • “$”or“dollars”aretothelawfulcurrencyoftheUnitedStates; • “€”or“euro”aretothecommoncurrencyofthememberstatesoftheEuropeanMonetaryUnion; • “AAAAssociates”aretoAAAAssociates,L.P.,aGuernseylimitedpartnership,whichservesasthe generalpartneroftheInvestmentPartnership; • “admission”aretoadmissionofourcommonunitstolistingandtradingonEurolistbyEuronext; • “affiliate”or“affiliated”aretoapersonthatdirectlyorindirectly,throughoneormoreintermediaries, controls,iscontrolledby,orisundercommoncontrolwith,anotherspecifiedperson.Forthepurposeof thisdefinition,theterm“control”(includingtheterms“controlling”,“controlledby”and“under commoncontrolwith”)meansthepossession,directlyorindirectly,ofthepowertodirectorcausethe directionofthemanagement,includingday-to-daymanagement,andpoliciesofapersonorentity, whetherthroughtheownershipofsecurities,bycontractorotherwise; • “AICCo-invest”aretoAICCo-investII,L.P.,whichhasbeenformedbyApolloAlternativeAssetsto makeco-investmentsalongsideApolloInvestmentCorporationand/orApolloInvestmentEuropein situationswhereApolloInvestmentCorporationand/orApolloInvestmentEurope(asthecasemaybe) isnotabletodeploysufficientcapitaltofinanceaparticularinvestmentandinwhichtheInvestment Partnership,throughAICCo-investI,L.P.,willbethesoleinvestor; • “Apollo”are,asthecontextmayrequire,toApolloAdvisors,L.P.,ApolloManagement,L.P.,Apollo ManagementIV,L.P.,ApolloManagementV,L.P.,ApolloManagementVI,L.P.,ApolloInvestment Management,L.P.,andApolloEuropeManagement,L.P.,eachofwhichisalimitedpartnershipformed toactasmanagerofaparticularApolloFund(anditsco-investmententities),andanyotherentity formedtoactasmanagerofanApolloFund,andineachcasetoanyoftheiraffiliates,excludingApollo AlternativeAssets,providedalwaysthatanyreferencesinthisdocumenttoobligationsor responsibilitiesacceptedbyanyoftheforegoingentitiesshallnotimplyacceptanceofsuchobligation orresponsibilitybyanyApolloFundoranyportfoliocompanyinwhichanApolloFundorthe InvestmentPartnershiphas,whetherdirectlyorindirectly,invested; • “ApolloAlternativeAssets”aretoApolloAlternativeAssets,L.P.,aCaymanIslandsexemptedlimited partnershipandanaffiliateofApollo,whichactsasinvestmentmanagertousandtotheInvestment Partnership; • “ApolloFund”aretotheStrategicValueFund,ApolloInvestmentEurope,ApolloInvestmentCorporation, AICCo-invest,FundVI,FundVandFundIVandanyotherexistingorfuturepooledinvestmentvehicle (otherthanourpartnershiportheInvestmentPartnership)sponsoredormanagedbyApolloandinwhichat least25%oftheinvestablecapitalisprovidedbyinvestorswhoarenotaffiliatedwithApollo; • “ApolloInvestmentCorporation”or“AIC”aretoApolloInvestmentCorporation,aMaryland corporation; • “ApolloInvestmentEurope”or“AIE”aretoAPInvestmentEuropeLimited,aGuernseylimited company; • “Apolloinvestmentprofessionals”aretotheinvestmentprofessionalsofApollofromtimetotime, currentdetailsofwhomaresetoutinappendixBtothisdocument,whoseservicesareutilizedby ApolloandApolloAlternativeAssetsintheday-to-daymanagementoftheApolloFundsandthoseof ourpartnership; • “carriedinterest”aretointerests(includingincentivedistributions)grantedtoApollobyanApolloFund ortheInvestmentPartnershipwhichentitleApollotoreceiveallocations,distributionsorfeescalculated iii byreferencetotheperformanceofsuchfundoritsunderlyinginvestments,ortheunderlying investmentsoftheInvestmentPartnershiporitssubsidiaries,ratherthanbyreferencetoamounts contributedtosuchfundorinvestmentorinvestedbyApollointheInvestmentPartnership; • “Citigroup”aretoCitigroupGlobalMarketsLimitedofCitigroupCentre,33CanadaSquare,London E145LB; • “CreditSuisse”aretoCreditSuisseSecurities(USA)LLCofElevenMadisonAvenue,NewYork 10010; • “existingApolloprivateequityfunds”aretoFundVI,FundVandFundIV; • “FundIV”aretoApolloInvestmentFundIV,L.P.,aDelawarelimitedpartnership,anditsparallel co-investmentfunds; • “FundV”aretoApolloInvestmentFundV,L.P.,aDelawarelimitedpartnership,anditsparallel co-investmentfunds; • “FundVI”aretoApolloInvestmentFundVI,L.P.,aDelawarelimitedpartnership,anditsparallel co-investmentfunds; • the“globalprivateplacement”aretotheprivateplacementofanaggregateof75,000,000commonunits intheformofRDUsonJune15,2006; • the“globalprivateplacementandrelatedtransactions”areto(i)theglobalprivateplacement,(ii)the issuanceof11,250,000commonunitsintheformofRDUstoourManagingGeneralPartnerinrespect ofwhichithasgrantedastabilizationoptioninconnectionwithourglobalprivateplacement,(iii)a$74 millioncashcontributionmadetoourpartnershipbyAAAHoldings,L.P.,aGuernseylimited partnershipthatisownedbyApolloinvestmentprofessionalsandsenioradvisors,(iv)a$1millioncash contributionmadetotheInvestmentPartnershipbyitsgeneralpartner,whichisownedbycertain Apolloinvestmentprofessionals,and(v)ouruseofthecapitalcontributionsthatwehavereceivedin connectionwiththeforegoingtransactionsasdescribedunder“UseofProceedsfromourGlobalPrivate PlacementandRelatedTransactions”beginningonpage47; • “GoldmanSachsInternational”aretoGoldmanSachsInternationalofPeterboroughCourt,133Fleet Street,LondonEC4A2BB; • “investedcapital”withrespecttothehistoricalreturnsoftheValueInvestmentFund,excludeassets heldincashpendinginvestment; • the“initialofferingprice”aretotheinitialofferingpriceof$20.00perRDUinconnectionwiththe globalprivateplacementandrelatedtransactions; • the“InvestmentPartnership”aretoAAAInvestments,L.P.,aGuernseylimitedpartnership,and,as applicable,itssubsidiaries,throughwhichourinvestmentswillbemade; • “JPMorgan”aretoJ.P.MorganSecuritiesInc.of277ParkAvenue,NewYork,NY10172; • our“ManagingGeneralPartner”aretoAAAGuernseyLimited,aGuernseylimitedcompanywith registrationnumber44836,whichservesasourgeneralpartner; • “ourcapitalinvestedinApolloFunds”aretotheaggregateoftheacquisitioncostofthesecuritieswe holdin,andamountscommittedbyustopurchasesecuritiesin,allApolloFunds(whetherdirectlyor indirectlyandwhetherfundedoutoftheproceedsoftheissueofcommonunits,thedisposalof investmentsorthroughborrowingsincurredbyourpartnershiportheInvestmentPartnership); • the“ManagingInvestmentPartner”aretoAAAMIPLimited,aGuernseylimitedcompany,which servesasthegeneralpartnerofAAAAssociates; • “privateequityinvestments”areto(i)directorindirectinvestmentsinexistingandfutureprivateequity fundsmanagedorsponsoredbyApollo,(ii)directorindirectco-investmentswithexistingandfuture iv privateequityfundsmanagedorsponsoredbyApollo,(iii)directorindirectinvestmentsinsecurities whicharenotimmediatelycapableofresaleinapublicmarketthatApolloidentifiesbutdoesnot pursuethroughitsprivateequityfunds,and(iv)investmentsofthetypedescribedin(i)through (iii)abovemadebyApolloFundsinwhichwehavedirectlyorindirectlyinvested; • “servicesagreement”aretoaglobalservicesagreemententeredintoamongApolloAlternativeAssets, asserviceprovider,andourpartnership,theInvestmentPartnership,AAAAssociates,theManaging GeneralPartnerandtheManagingInvestmentPartner,asservicerecipients; • “StrategicValueFund”or“SVF”aretoApolloStrategicValueFund,whichhasbeenformedbyApollo tobemanagedonabasisconsistentwiththeValueInvestmentFund; • “subsidiary”aretoanywholly-ownedsubsidiariesoftheInvestmentPartnershipformedforaparticular purposeorforaspecificinvestmentorinvestments,andwhicharenotthemselvesApolloFunds; • “temporaryinvestments”aretoinvestmentswhichweholdintheformof(i)cash,(ii)cashequivalents, or(iii)anyotherinvestmentgradeandliquidsecuritiesheldbyusforcashmanagementpurposesoras workingcapitalandwhichwedonotholdasaninvestmentinitsownright;and • “ValueInvestmentFund”or“VIF”aretoApolloValueInvestmentFund,L.P.andApolloValue InvestmentOffshoreFund,Ltd.,anexistingApollocapitalmarketsfundthatinvestsinthesecuritiesof distressedandhighlyleveredcompanies. Inthisprospectus,unlessthecontextsuggestsotherwise,weusetheterm“ourinvestments”toreferbothto ourlimitedpartnerinterestintheInvestmentPartnership,whichwillbetheonlyinvestmentsthatwerecordin ourstatementofassetsandliabilities,andinvestmentsthataremadebytheInvestmentPartnershipandits subsidiaries.AlthoughinvestmentsthataremadeonourbehalfandwithourcapitalbytheInvestment Partnershipanditssubsidiarieswillnotappearasinvestmentsinourfinancialstatements,wewillbetheprimary beneficiaryofsuchinvestmentsandwillbearthefullriskofloss.Wealsousetheterm“ourinvestments”torefer toportfolioinvestmentsoftheinvestmentfundsinwhichwewillinvest.Whileotherfundpartnerswillbe involvedinthoseportfoliocompanyinvestments,wegenerallywillbeentitledtoshareratablyinthereturns generatedbysuchinvestmentsandwillsufferthefullriskoflosswithrespecttosuchinvestments.Pleasekeep thisconventioninmindasyoureadthisprospectus. v TABLEOFCONTENTS Page NOTICETOINVESTORS ................................................................... i PRESENTATIONOFCERTAININFORMATION ................................................... iii SUMMARY ............................................................................. 1 RISKFACTORS ......................................................................... 7 SPECIALNOTEREGARDINGFORWARD-LOOKINGSTATEMENTS ................................... 36 SPECIALNOTEREGARDINGHISTORICALPRIVATEEQUITYVALUATIONANDRELATEDDATA ........... 37 OWNERSHIP,ORGANIZATIONALANDINVESTMENTSTRUCTURE ................................... 41 USEOFPROCEEDSFROMOURGLOBALPRIVATEPLACEMENTANDRELATEDTRANSACTIONS ........... 47 DISTRIBUTIONPOLICY ................................................................... 48 CAPITALIZATION ........................................................................ 49 MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOF OPERATIONS ......................................................................... 50 BUSINESS.............................................................................. 62 OURMANAGEMENTANDCORPORATEGOVERNANCE ........................................... 82 MANAGEMENTOFTHEINVESTMENTPARTNERSHIP............................................. 92 APOLLOALTERNATIVEASSETSANDOURSERVICESAGREEMENT ................................. 96 SECURITYOWNERSHIP ................................................................... 103 RELATIONSHIPSWITHAPOLLOANDRELATEDPARTYTRANSACTIONS.............................. 104 DESCRIPTIONOFOURCOMMONUNITSANDOURLIMITEDPARTNERSHIPAGREEMENT ................ 109 DESCRIPTIONOFTHEINVESTMENTPARTNERSHIP’SLIMITEDPARTNERSHIPAGREEMENT .............. 121 DESCRIPTIONOFTHERESTRICTEDDEPOSITARYUNITSANDOURRESTRICTEDDEPOSITAGREEMENT .... 127 CERTAINTAXCONSIDERATIONS ........................................................... 135 TRANSFERRESTRICTIONS ................................................................. 160 CERTAINERISACONSIDERATIONS ......................................................... 164 DESCRIPTIONOFOURGLOBALPRIVATEPLACEMENT ........................................... 166 EURONEXTMARKETINFORMATION ......................................................... 169 LEGALMATTERS ....................................................................... 170 INDEPENDENTACCOUNTANTS ............................................................. 170 GUERNSEYADMINISTRATOR .............................................................. 170 DOCUMENTSAVAILABLEFORINSPECTION ................................................... 170 APPENDIXA:INVESTMENTS ............................................................... A-1 APPENDIXB:APOLLOINVESTMENTPROFESSIONALS ........................................... B-1 vi SUMMARY Thissummaryhighlightscertainaspectsofourbusinessandshouldbereadasanintroductiontothis prospectus.Anydecisiontoinvestinourpartnershipshouldbebasedonaconsiderationofthisprospectusasa whole.Nocivilliabilityistoattachtoourpartnershipsolelyonthebasisofthissummaryunlessitismisleading, inaccurateorinconsistentwhenreadtogetherwiththeotherpartsofthisprospectus.Ifaclaimrelatingtothe informationinthisprospectusisbroughtbeforeacourtofaMemberStateoftheEuropeanEconomicArea,the plaintiffmayunderthenationallegislationoftheMemberStatewheretheclaimisbroughtberequiredtobear thecostsoftranslatingthisprospectusbeforelegalproceedingsareinitiated. OurPartnership WeareaGuernseylimitedpartnershipmanagedbyApolloAlternativeAssets.ApolloAlternativeAssetsis anaffiliateofApollo,aleadingprivateequity,debtandcapitalmarketsinvestorwith16yearsofexperience investingacrossthecapitalstructureofleveragedcompanies.Wehavetheabilitytoinvestin,orco-investwith, allofApollo’scurrentandfutureprivateequityandcapitalmarketsinvestmentfunds. Inconnectionwithourglobalprivateplacementandrelatedtransactions,weissuedanaggregateof 78,700,000RDUsataninitialofferingpriceof$20.00perRDU,whichincluded3,700,000RDUsissuedto affiliatesofApollo,andanadditional11,250,000RDUstoourManagingGeneralPartnerinrespectofwhichit hasgrantedastabilizationoptiontothemanagersofourglobalprivateplacementwhichhasnotyetbeen exercised.Wehavesubsequentlyissuedanadditional15,000,000RDUsatapriceof$20.00perRDU.Asa result,weraisedapproximately$1,764million(netofexpenses)tofundcapitalcommitments,futureinvestments andourworkingcapitalrequirements. OurInvestmentStrategy ApolloAlternativeAssetsimplementsourinvestmentpoliciesandproceduresandcarriesouttheday-to-day managementandoperationsofourbusinesspursuanttoaservicesagreement.Weanticipatethatovertime, approximately50%ofourcapitalwillbeinvestedinprivateequity.Ourinvestmentsinprivateequityare expectedtoconsistmainlyof(i)commitmentstoprivateequityfundssponsoredbyApollo,(ii)co-investments alongsidesuchfunds,and(iii)purchasesofsecondaryinterestsinsuchfunds.Ourpartnershiphasa co-investmentagreementwithFundVI,whichrepresentsanaggregateco-investmentopportunityof approximately$1.5billion. Inadditiontoourinvestmentsinprivateequity,weanticipatethatcapitalwillbedeployedthrough investmentsin,orco-investmentarrangementswith,Apollo’scapitalmarkets-focusedfunds,includingthe StrategicValueFund(oneofApollo’sdebtandequityinvestmentfundsfocusedonvalue-orientedanddistressed securities),ApolloInvestmentEurope(Apollo’sEuropeanmezzanineandleverageddebtinvestmentvehicle)and ApolloInvestmentCorporation(Apollo’sU.S.mezzanineandleverageddebtinvestmentvehicle).Wealso expecttoinvestinadditionalcapitalmarketsfunds,privateequityfundsandinvestmentsidentifiedbyApollo AlternativeAssets. Webelievethatwehavetheabilitytodeployapproximately$1.3billioninprivateequityandcapital marketsinvestmentsbeforetheendof2006,representingapproximately90%oftheinitialcapitalraisedinthe globalprivateplacement.Ofthe$1.3billion,asofJuly28,2006,wehaveinvestedapproximately$400million intheStrategicValueFund,wehaveinvested,orcommittedtoinvest,approximately$140millioninApollo InvestmentEuropeandthroughourco-investmentwithFundVIwehaveinvested,orcommittedtoinvest, approximately$130millioninthreerecentlyannounceddealswhichhaveclosedorareexpectedtoclosebymid- August2006.Thebalanceofourinitialcapitaliscurrentlyinvestedintemporaryinvestments. Apollo’sRoleinOurInvestments WerelyontheskillsoftheApolloinvestmentprofessionalsinselecting,evaluating,structuring, negotiating,executing,monitoringandexitingourinvestmentsandformanagingouruninvestedcapitalin 1 accordancewithourcashmanagementpolicy.TheseactivitiesarecarriedoutbytheApolloinvestment professionalsandApolloAlternativeAssets’investmentcommitteepursuanttoourservicesagreementorunder theinvestmentmanagementagreementsbetweenApolloanditsinvestmentfunds.ApolloAlternativeAssetshas broaddiscretionwhenmakinginvestmentrelateddecisionsunderourservicesagreementandApollohas similarlybroaddiscretioninrelationtoitsotherinvestmentfundsunderthetermsoftherelevantinvestment managementagreements.OurManagingGeneralPartner’sboardofdirectorsapprovesspecificinvestment decisionsinonlylimitedcircumstances.Ourabilitytogrowourinvestmentbaseandtogeneratereturnstherefore dependsontheabilityofApollo’sinvestmentprofessionalstoexecuteourinvestmentstrategy. Apolloisstronglycommittedtooursuccess.Inconnectionwithourformationandtheglobalprivate placement,theApolloinvestmentprofessionalsandsenioradvisorscontributed$75millionincashtoour partnershipandtheInvestmentPartnership,ofwhich$74millionwascontributedtousinexchangefor 3,700,000RDUsissuedattheinitialofferingprice.Additionally,underourservicesagreement,Apollo AlternativeAssetshasagreedtocauseApollotoacquireadditionalcommonunits,RDUsorotherequity securitiesfromusonaquarterlybasiswithanamountequalto25%oftheaggregateafter-taxcashdistributions, ifany,madetoApollopursuanttothecarriedinterestsapplicabletoourinvestments.Commonunits,RDUsor otherequitysecuritiesthathavebeenormaybeissuedtoApolloanditsaffiliatesinconnectionwiththeglobal privateplacementandrelatedtransactionsorpursuanttoourservicesagreementasdescribedabovearesubjectto ageneralprohibitionontransferforaperiodofthreeyearsfromthedateofissuance.Webelievethese arrangementscreateanincentiveforApollotopursueinvestmentsthathelpusachieveourgoalofcreatinglong- termvalueforourunitholders. OurManagingGeneralPartner OurManagingGeneralPartnerisresponsibleformanagingourbusinessandaffairs.OurManagingGeneral Partnerhasaboardofdirectorsandexpectstoappointachieffinancialofficerwhoseserviceswillbeprovided pursuanttoourservicesagreement.OurManagingGeneralPartner’sdirectorsareresponsibleformonitoring compliancewithourinvestmentpoliciesandprocedures,butgenerallydonotrevieworapproveindividual investmentdecisions.Rather,authorityformakingindividualinvestmentdecisionshasgenerallybeendelegated toApolloAlternativeAssetspursuanttoourservicesagreementortoApollounderinvestmentmanagement agreementsbetweenApolloandtheApolloFunds. AboutApollo Foundedin1990,Apolloisarecognizedleaderinprivateequity,debtandcapitalmarketsinvestingandhas investedmorethan$16billionsinceitsinception.ApolloisledbyLeonBlack,asmanagingpartner,andthree additionalfoundingpartners:JohnHannan,JoshHarrisandMarcRowan.Thebusinessemploysmorethan60 investmentprofessionalsandhasofficesinNewYork,LondonandLosAngeles. TheprivateequitybusinessisthecornerstoneofApollo’sinvestmentactivities.Fromitsinceptionin1990 throughMarch31,2006,Apollohasinvestedmorethan$13billioninover150companiesfromitsprivate equityfundsalone.Apollo’sprivateequityfundshavegeneratedagrossannualizedreturnof41%andamultiple of2.1timesinvestedcapitalsinceitsfoundingin1990throughMarch31,2006.FundV,Apollo’s2001vintage yearfund,hasgeneratedagrossannualizedreturnof84%andamultipleof2.3timesinvestedcapitalsinceits inceptioninApril2001throughMarch31,2006.Webelievethatthesereturnsareconservativelycalculated becausetheyincludeapproximately$1.6billionofinvestmentsheldatcost.Approximately90%ofinvestments byprivateequityfundssponsoredbyApollohavegeneratedpositivereturns,andnosuchfundhaseverlost capital. 2 ApollorecentlyclosedFundVI,withcommittedcapitalof$10.1billion,anditisintheprocessofactively investingthatfundinprivateequitytransactions.Throughourco-investmentwithFundVI,wehaveinvested,or committedtoinvest,approximately$130millioninthreerecentlyannounceddeals,whichhaveclosedorare expectedtoclosebymid-August2006,namely: • BerryPlastics,aleadingmanufacturerandmarketerofrigidplasticpackagingproducts,whichApollo expectstopurchasefor$2.25billion. • Rexnord,aworldwidemanufacturerofhighly-engineeredprecisionmotiontechnologyproducts primarilyfocusedonpowertransmission,whichApollopurchasedfor$1.825billiononJuly21,2006. • InternationalPaper’scoatedandsupercalenderedpapersbusiness,abusinessthatproducesannually approximately2milliontonsofcoatedfreesheetandcoatedgroundwoodpapersforthemagazine, catalogandretailinsertmarkets,whichApolloexpectstopurchasefor$1.37billion. Apollo’scapitalmarketsoperationswerestartedin1990asacomplementtoApollo’sprivateequity investmentactivity.Apollohassponsoredorcurrentlymanagesthreecapital-marketsfocusedvehicleswewill investin,oralongsidewith,whichtakeadvantageofthesamedisciplined,value-orientedinvestmentphilosophy employedwithrespecttoprivateequity.Thosevehicles,theStrategicValueFund,ApolloInvestmentEurope andApolloInvestmentCorporation,focusprimarilyondebtandequityinvestmentopportunitiesthatgenerate capitalappreciationandcurrentincome.WebelieveeachcapitalmarketsvehiclebenefitsfromApollo’smarket insight,managementcontacts,industryconsultants,bankingcontactsandexposuretoabroadarrayofpotential investmentopportunities.Inturn,webelievetheexistingApolloprivateequityfundsbenefitfromthecapital marketsvehicles’deepinvolvementinandspanofrelationshipswithinthedebtandequitymarkets. CompetitiveStrengths Webelieveourcompetitivestrengthsinclude: • Apollo’sstrongtrackrecordintargetedinvestmentclasses; • ourdiversifiedexposuretotheinvestmentstrategiesmanagedbyApollo,aleadingprivateequity,debt andcapitalmarketsinvestor; • ourabilitytorapidlydeploycapital; • theactiveinvolvementofApollo’sexperiencedandcohesiveinvestmentteaminourinvestments;and • ourabilitytobenefitfromApollo’scollaborativeinvestmentplatform. FeesandCarriedInterests Underourservicesagreement,weandtheotherservicerecipientshavejointlyandseverallyagreedtopay ApolloAlternativeAssetsaquarterlymanagementfee,payableinarrears,inanaggregateamountequalto one-fourthoftherelevantpercentageofouradjustedassets.Therelevantpercentageis1.25%inrespectofthe first$3billionofouradjustedassetsand1%inrespectofanyexcessadjustedassetsover$3billion.Generally, weanticipatethatouradjustedassetsforthepurposesofthemanagementfeewillbeapproximatelyequaltoour assetvalue,whichincludesthevalueofassetsacquiredwiththeproceedsofborrowingsincurredbyus,ifany, less(i)thevalueofourcapitalinvestmentsintheApolloFundsand(ii)thevalueofourtemporaryinvestments. Themanagementfeeunderourservicesagreementthereforereflectsthevalueofourunrealizedinvestments, otherthaninrespectofourcapitalinvestedinApolloFunds.InrespectofourcapitalinvestedinApolloFunds, Apollowillreceivemanagementfeesdirectlyfromtherelevantfunds.Thesemanagementfeeswillbethesame asthosechargedtootherinvestorsand,inthecaseofcapitalmarketsfunds,maybehigherthanthosedescribed above.Therewillbenodoublechargingofmanagementfees.Inaddition,ApolloAlternativeAssetswillnot chargeamanagementfeeontemporaryinvestmentsforthelifeofourpartnership. 3

Description:
This prospectus has been produced solely in connection with our application for . “existing Apollo private equity funds” are to Fund VI, Fund V and Fund IV;.
See more

The list of books you might like

Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.