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Corporate Portfolio Analysis Techniques By Michael Dreiser, eHow Contributor


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Modern corporate portfolio analysis theory centers around the reduction of the risk associated with a basket of investment securities while simultaneously maximizing the return from the same basket of securities. Corporate portfolio analysts are primarily concerned with downside risk, or the risk that the portfolio will decline in value, either in nominal terms or relative to a market index

Read more: Diversification

The basis of modern corporate portfolio analysis is found in diversification. Portfolio diversification theory states that when investments are randomly added to a portfolio, the average expected return of a portfolio remains the same no matter how many investments are added, but that the risk in the portfolio decreases.


As an example, assume that the average return for all stocks in the S&P 500 was known to be 10 percent; an investor randomly picking a stock from the index would expect, on average, a 10 percent return. That investor, however, would have a high level of risk that the actual return on that single stock may deviate from the 10 percent average. An investor, however, that owned all 500 stocks in the S&P 500 would be guaranteed that 10 percent return. There would be no risk that return (as we're assuming it's already known) would deviate from the 10 percent average. Sponsored Links

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Modern corporate portfolio analysis works through the statistical concept of correlation. In finance, correlation is a measure of how closely the returns of two or more investment securities respond to each other. Most stocks are positively correlated to each other, as they tend to increase and decrease together. When the market increases as a whole, most (but not all) individual stocks will also increase. When the market declines as a whole, most (but not all) individual stocks will also decrease. Many stocks and bonds tend to be somewhat negatively correlated --- when stocks increase in value, bonds are more likely than not to decline in value.


Because of the effects of correlation, portfolio managers attempt to hold as many negatively correlated instruments as they can. In practice, this is often difficult to do while maintaining the portfolio's investment objectives. As a result, managers tend to settle for instruments that are imperfectly correlated. Imperfect correlation means that even though there's a relationship between the price movements of two securities, the price movements of the two securities won't always move in tandem. It is through these imperfectly correlated securities not moving in tandem that the effects of diversification are explained.


Portfolio managers, in their search to reduce risk while maintaining returns, often utilize hedging within their portfolios. Hedging typically involves the use of financial derivatives, which may be perfectly negatively correlated to positions held within a portfolio. For example, if a portfolio holds a large ownership interest in Stock XYZ, and the portfolio manager wishes to reduce the risk of the holding without selling any portion of it, the portfolio manager may purchase a negatively correlated derivative instrument, such as a put option on Stock XYZ. When the price of Stock XYZ decreases, the value of the put option would increase, thereby reducing risk within the portfolio.

Read more: Advantages & Limitations of a Portfolio Analysis By Douglas Thorne, eHow Contributor


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Analyzing the risk and return characteristics of your portfolio can help you keep on track with your investment goals. A portfolio analysis is a useful tool in evaluating how your investment portfolio is performing in terms of rate of return and risk. Accomplished by looking not only at how your individual investments perform but also how they perform together, an analysis can identify underperforming or excessively risky assets and provide guidance as to where changes to your investment allocations should be made to keep you on track to meet your investment objectives. Although each individual investor has his own goals in terms of performance, a routine analysis can be useful for any portfolio regardless of its strategy. Portfolio analysis is a helpful tool, but it is not without limitations. Have a question? Get an answer from a Personal Finance Professional now! Ads by Iminent

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The Advantages of Portfolio Analysis

Portfolio Analysis Disadvantages

1. Portfolio Analysis Basics

In his book "Portfolio Selection: Efficient Diversification of Investments," author Harry Markowitz identifies the basis of portfolio analysis in two objectives shared by all investors. They want the return to be high and they want this return to be dependable, stable and not subject to uncertainty. This has been interpreted as the trade off between risk and reward. Investors are willing to take risk, but not any more than is justified by the potential return. While maximizing returns is one objective investors can have, portfolio analysis also has advantages in minimizing risk as well as tax efficiency.

Risk and Return Advantages


Markowitz' Modern Portfolio Theory and views on portfolio analysis, which would eventually earn him in 1990 the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, are focused on evaluating and managing the risks and returns of a portfolio of investments. Through analysis, under-performing assets as well as assets with excess risk relative to their returns can be identified and replaced. This is highly advantageous as the resulting "optimized" portfolio will have either the same expected return with less risk than before or a higher expected return with the same level of risk. Sponsored Links

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In addition to maximizing returns for a given level of risk, portfolio analysis also is advantageous in minimizing the tax impact on portfolio returns. Depending on such variables as the type of account, security type and tax bracket of the investor, taxation can eat into returns and make otherwise attractive investments mediocre at best. A portfolio analysis with a focus on tax efficiency may prove advantageous in identifying ways to structure investments to minimize the impact of taxes and increase the net return to the investor.


Even with the most careful planning and portfolio construction, past performance is never a guarantee for future results. Even the most thought out investment strategies can fail given the proper circumstances. Additionally, investment objectives can change over time. For example, from long-term growth during the early stages of a career to preservation of capital during retirement, a portfolio analysis will need to be done periodically to make sure your investments are in line with your objectives.

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Read more: Portfolio Management Strategies for Your Corporation By Michael Taillard from Corporate Finance For Dummies The buying, selling, and trading of investments within a portfolio optimizing the returns of the portfolio by managing which investments the portfolio holds is considered portfolio management.But the portfolio itself remains constant despite the changes of its exact contents. The portfolio itself only actually changes when the underlying investment strategy changes. Thats why corporations often have multiple investment portfolios. Each portfolio is managed utilizing a unique strategy, based on the goals of the investors. For example, a corporation may have a stock investment portfolio that it uses to generate returns on petty cash, while also maintaining a capital investment portfolio that includes land, corporate acquisitions and subsidiaries, and other types of capital. Each of these portfolios has very different contents and very different purposes for existing, and the strategies involved in managing the contents are very different as well.

The following list looks briefly at three different portfolio management strategies:

Slush fund/petty cash portfolio: A corporation that maintains a cash account for irregular small payments that come up from time to time can still generate a return on this cash by maintaining a portfolio of short-term, highly liquid investments, such as T-bills and dividendgenerating funds. Hedge portfolio: Not to be confused with a hedge fund, a hedge portfolio is intended to hedge(take actions that limit risk or uncertainty) other forms of risk by managing derivatives and diversifying investments. A portfolio like this changes based on the types or amount of risk being accepted by the corporation. Debt portfolio: This type of investment portfolio invests exclusively in bonds of different types and with different maturity dates, usually with the intention of staggering maturity dates and coupon maturities in order to maintain regular cash flows.


Apollo Global Management

From Wikipedia, the free encyclopedia Apollo Global Management LLC

Type Traded as Industry Founded Founder(s)

Public NYSE: APO Asset management 1990 Leon Black, John Hannan,Josh Harris, Marc Rowan, Craig Cogut, Arthur Bilger,Antony Ressler

Headquarters Solow Building New York City, United States Key people Leon Black, Marc Rowan, Josh Harris, Marc Spilker


Private equity funds, credit funds, real estate funds,alternative Investment,Leveraged buyouts, Growth capital, Venture capital $114.3 billion (2013)[1] $21.3 billion (2013)[1]

AUM Total assets Website

Apollo Global Management, LLC is an American private equity firm, founded in 1990 by former Drexel Burnham Lambert banker Leon Black.[2] The firm specializes inleveraged buyout transactions and purchases of distressed securitiesinvolving corporate restructuring, special situations and industry consolidations. Apollo is headquartered in New York City, and also has offices in Purchase, New York,Los Angeles, Houston, London, Frankfurt, Luxemburg, Singapore, Hong Kong and Mumbai. The firm has invested over $16 billion in companies.[3] As of March 2013, Apollo managed over US$114 billion of investor commitments across its private equity, credit and real estate funds and other investment vehicles making it one of the largest alternative investment management firms globally.[4] Among the most notable companies currently owned by Apollo are Claire's, Caesars Entertainment Corporation, Norwegian Cruise Line, and Realogy (Coldwell Banker and Century 21 Real Estate), CKE (Hardee's and Carl's Jr. Restaurants. Ltd) and CORE Media Group (American Idol, Elvis Presley Enterprises, Muhammad Ali Enterprises)[5][6] Contents [hide]

1 History
o o o

1.1 1990s 1.2 2000-2005 1.3 Since 2005

2 Operations 3 Investment vehicles

o o o

3.1 Private equity funds 3.2 Apollo Investment Corporation 3.3 AP Alternative Assets

4 Portfolio investments

5 Affiliated businesses
o o

5.1 Lion Advisors 5.2 Ares Management

6 References 7 External links


7.1 Apollo affiliates

History[edit] History of private equity and venture capital

Early history (Origins of modern private equity) The 1980s (LBO boom) The 1990s (LBO bust and the VC bubble) The 2000s (Dot-com bubble to the credit crunch)

Apollo, originally referred to as Apollo Advisors, was founded in 1990, on the heels of the collapse of Drexel Burnham Lambert in February 1990. It was founded by Leon Black, the former head of Drexel's mergers and acquisitions department, along with other Drexel alumni.[7] Among the most notable founders are John Hannan, Drexel's former co-director of international finance; Craig Cogut, a lawyer who worked with Drexel's high-yield division in Los Angeles; and Arthur Bilger, the former head of the corporate finance department. Other founding partners includedMarc Rowan, Josh Harris and Michael Gross, who both worked under Black in the mergers and acquisitions department and Antony Ressler, who worked as a senior vice president in Drexel's high yield department with responsibilities for the responsibility for the new issue/syndicate desk.[8][9][10] Less than six months after the collapse of Drexel, the founders of Apollo had already begun a series of ventures. Apollo Investment Fund L.P., the first of their private equity investment funds was formed to make investments in distressed companies. Apollo's first fund raised approximately $400 million of investor commitments on the strength of Black's reputation as a prominent lieutenant of Michael Milken and key player in the buyout boom of the 1980s.[8] Lion Advisors was set up to provide investment services to Credit Lyonnais, which was seeking to profit from depressed prices in the high yield market.[11] 1990s[edit] At the time of Apollo's founding, financing for new leveraged buyouts was minimal and Apollo turned instead to a strategy of distressed-to-control takeovers.[12][13] Apollo would purchase distressed securities which could be converted into a controlling interest in the equity of the company through a bankruptcy reorganization or other restructuring. Apollo used distressed debt as an entry point, enabling the firm to invest in such firms as Vail Resorts,[14] Walter Industries,[15][16] Culligan and Samsonite.[17] Early on, Apollo made a name for itself by acquiring interests in companies that Drexel had helped finance by purchasing high-yield bonds from failed savings and loans and insurance companies. Apollo acquired several large portfolios of assets from the U.S. government's Resolution Trust Corporation.[18] One of Apollo's earliest and most successful deals involved the acquisition of Executive Life Insurance Company's bond portfolio. Using this vehicle, Apollo would purchase the Executive Life portfolio, generating tremendous profits when the value of high yield bonds recovered, but also resulting in a variety of state regulatory issues for Apollo and Credit Lyonnais over the purchase.[19] More than a decade after the purchase, in 2002, California Attorney General Bill Lockyer accused Apollo, Leon Black, and an investor group led by French bank Credit Lyonnais, of illegally acquiring the assets and bond portfolio of Executive Life Insurance Co. in 1991. According to the State of California, Lion allegedly violated a California law that prohibited foreign governmentowned banks from owning California insurance companies.[20]

AREA Property Partners logo

In 1993, Apollo Real Estate Advisers was founded in collaboration with William Mack to seek opportunities in the U.S. property markets.[21] Apollo Real Estate Investment Fund, L.P., the first in a family of real estate opportunity funds was closed in April 1993 with $500 million of investor commitments. In 2000, Apollo exited the partnership, which continued to operate as Apollo Real Estate Advisers until changing its name toAREA Property Partners, effective January 15, 2009. That firm is owned and controlled by its remaining principals, who include William Mack, Lee Neibart, William Benjamin, John Jacobsson, Stuart Koenig and Richard Mack.[22] Apollo Real Estate Investment Fund, L.P., the first in a family of real estate opportunity funds was closed in April 1993 with $500 million of investor commitments. As of 2008, the firm was investing out of three funds: Apollo Real Estate Investment Fund V, Apollo European Real Estate Fund II and Apollo Value Enhancement Fund VII. In 2004, Apollo Real Estate acquired the Value Enhancement Funds family of investment vehicles to broaden its offerings in the value-added segment of the real estate investment spectrum. Apollo also operates a real estate mezzanine lending program and real estate securities hedge fund called Claros Real Estate Securities Fund, L.P.[23] In 1995, Apollo raised its third private equity fund, Apollo Investment Fund III with $1.5 billion of investor commitments from investors that included CalPERS and the General Motors pension fund.[24][25] Unlike its first two funds and later funds, Fund III would ultimately prove only an average performer for private equity funds of its vintage. Among the investments made in Fund III (invested through 1998) were: Alliance Imaging, Allied Waste Industries, Breuners Home Furnishings, Levitz Furniture,[26]Communications Corporation of America,[27] Dominick's, Ralphs (acquired Apollo'sFood4-Less),[28], NRT Incorporated,[29] Pillowtex Corporation,[30]Telemundo[31] and WMC Mortgage Corporation.[32]

Apollo invested in AMC in 2001 and would buy out the company in 2004 Also in 1995, Apollo founding partner Craig Cogut left the firm to found a smaller competitor Pegasus Capital Advisors. Since inception Pegasus has raised $1.8 billion in four private equity funds focused on investments in middle-market companies in financial distress. In 1997, Apollo co-founder Tony Ressler foundedAres Management as the successor to its Lion Advisors business which would manage collateralized debt obligationvehicles.[33] In 1998, Apollo raised its fourth private equity fund, Apollo Investment Fund IV, with $3.6 billion of investor commitments.[24] Among the investments made in Fund IV (invested through 2001) were: Allied Waste Industries,[34] AMC Entertainment,[35]Berlitz International,[36] Clark Retail

Enterprises,[37] Corporate Express (Buhrmann), Encompass Services Corporation, National Financial Partners, Pacer International,[38]Rent-A-Center, Resolution Performance Products, Resolution Specialty Materials,Sirius Satellite Radio, SkyTerra Communications, United Rentals and Wyndham Worldwide.[39] 2000-2005[edit]

Apollo's headquarters in theSolow Building at 9 West 57th Street in New York City, formerly occupied by Tyco Apollo deployed its fourth fund during the booming markets of the late 1990s, only to experience difficulties with the collapse of the Internet bubble and the onset of the recession. Amid the turmoil of collapsing markets, Apollo was able to raise its fifth private equity fund in 2001, Apollo Investment Fund V, with $3.7 billion of investor commitments, roughly the same amount raised as for its previous fund.[24]Among the investments made in Fund V (invested through 2006) were Affinion Group, AMC Entertainment, Berry Plastics, Cablecom, Compass Minerals, General Nutrition Centers (GNC), Goodman Global, Hexion Specialty Chemicals(Borden), Intelsat, Linens n Things, Metals USA,Nalco Investment Holdings, Sourcecorp,Spectrasite Communications, and Unity Media. Meanwhile, Ares continued to grow through the late 1990s, and profited significantly from investments made after the collapse of the high yield market in 2000 and 2001. Although technically, the founders of Ares had completed a spin out with the formation of the firm in 1997, they had maintained a close relationship with Apollo over its first five years and operated as the West Coast affiliate of Apollo. By 2002, when Ares raised its first corporate opportunities fund, the firm announced that it was more formally separating itself from its former parent company.[40] The timing of this separation also coincided with Apollo's legal difficulties with the State of California over its purchase of Executive Life Insurance Company in 1991. Following the spin-off of Ares in 2002, Apollo developed two new affiliates to continue its investment activities in the capital markets. The first of these new affiliates, founded in 2003, was Apollo Distressed Investment Fund (DIF) Management a credit opportunity investment vehicle.[41] The following year, in April 2004, Apollo raised $930 million through an initial public offering (IPO) for a listed business development company, Apollo Investment Corporation

(NASDAQ: AINV)). Apollo Investment Corporation was formed to invest primarily in middle-market companies in the form ofmezzanine debt and senior secured loans, as well as by making certain direct equity investments in companies. The Company also invests in the securities of public companies.[42][43] Since 2005[edit]

Caesars Palace, acquired as part of Apollo's LBO of Harrah's Entertainment The 2005 - 2007 period marked a boom period in private equity with new "largest buyout" records set and surpassed several times in an 18-month window from the beginning of 2006 through the middle of 2007.[44] Apollo was among the most active investors in leveraged buyout transactions during this period. Although Apollo was involved in a number of notable and large buyouts, the firm largely avoided the very largest transactions of this period. Among Apollo's most notable investments during this period included Harrah's Entertainment, a leading US gaming and casino company; Norwegian Cruise Line, the cruise line operator; Claire's Stores, the retailer of costume jewelry; and Realogy, the real estate franchisor that owns Coldwell Banker, Century 21 and Sotheby's International Realty.[45] In August 2006, Apollo launched a $2 billion publicly traded private equity vehicle in Europe, AP Alternative Assets (ENXTAM:AAA).[43] The IPO of this new vehicle followed in the footsteps of Kohlberg Kravis Roberts, which raised $5 billion for its KKR Private Equity Investors vehicle in May 2006.[46] Apollo initially attempted to raise $2.5 billion for the public vehicle, but fell short when it offered the shares in June, raising only $1.5 billion. Apollo raised an additional $500 million via private placements in the weeks following that sale.[47] As the private equity industry expanded through 2006 and 2007, several of the largest private equity firms, most notably The Blackstone Group and Kohlberg Kravis Roberts, announced plans to realize value from their firms through the sale of shares in the public equity markets. Apollo Management chose a slightly different path, by completing a private placement of shares in its management company in July 2007. By pursuing a private placement rather than a public offering, Apollo would be able to avoid much of the public scrutiny applied to Blackstone and KKR.[43][48] In November 2007, Apollo was able to realize additional value from the sale of a 9% ownership interest in its management company to the Abu Dhabi Investment Authority (ADIA).[49]

Ultimately, in April 2008, Apollo would file with the U.S. Securities and Exchange Commission (SEC)[50] to permit some holders of its privately traded stock to sell their shares on the New York Stock Exchange and in March 2011, Apollo completed its initial public offering (NYSE: APO).[51] In 2008, the firm opened an office in India, marking their first push into Asia.[52]

Apollo lost its investment in retailer Linens 'n Things with the company's 2008 bankruptcy[53] As the deterioration of the financial markets worsened into 2008, Apollo saw several of its investments come under pressure. Apollo's 2005 investment in the struggling US retailer, Linens 'n Things suffered from a significant debt burden and softening consumer demand. In May 2008, Linens was forced to file for bankruptcy protection, one of several high profile retail bankruptcies in 2008, costing Apollo all of its $365 million investment in the company.[53][54] At the same time, Apollo's investment in Claire's, Realogy and Harrah's Entertainment came under pressure.[45] Apollo would respond actively to its investment difficulties seeking toexchange a portion of the existing debt at Harrah's and Realogy to more favorable securities.[55] At Claire's, Apollo exercised its "PIK toggle" option to shut off cash interest payments to its bondholders and issue more debt instead, in order to provide the company with additional financial flexibility.[56] In December 2008, Apollo completed fundraising for its latest fund, Apollo Investment Fund VII with approximately $14.7 billion of investor commitments.[57] Apollo had been targeting $15 billion, but had been in fundraising for more than 16 months, with the bulk of the capital raised in 2007.[58] In December 2009, it was announced that Apollo would acquire Cedar Fair Entertainment Company shares and the company would be become private underneath the management group.[59] The deal includes a cash payment of $635 million and assumed debt which gives the transaction a value of $2.4 billion.[60] It was later announced in April 2010 that the deal was pulled due to poor shareholder response.[61] In March 2012 it made a second attempt to acquire an amusement park operator with a $225.7 million offer for Great Wolf Resorts.[62] On March 11, 2013, Apollo Global Management made the only bid for the snacks business of Hostess Brands, including Twinkies, for $410 million.[63] Operations[edit] Apollo is operated by its managing partners, Leon Black, Joshua Harris and Marc Rowan and a team of more than 250 investment professionals, as of March 31, 2013. The firm's headquarters are located in the Solow Building at 9 West 57th Street[64] in New York City, and the firm operates

additional offices in Purchase, New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Hong Kong and Mumbai[50] Apollos executive committee includes: Leon Black, chairman and chief executive officer; Josh Harris, senior managing director; Marc Rowan, senior managing director; and Marc Spilker who was hired as President in November 2010.[65] Apollo operates three business lines in an integrated manner:

Private equityThe private equity business is the cornerstone of Apollo's investment activities. Apollo invests through a variety of private equity strategies, most notably leveraged buyouts and distressed buyouts and debt investments. This business operates primarily through the firm's family of private equity investment funds (See: Investment funds)[50] CreditApollo invests through a variety of credit strategies to complement its core private equity business. Apollo invests through a variety of investment vehicles including mezzanine funds, hedge funds, European non-performing loan funds andsenior credit opportunity funds.[66] Real EstateApollo Global Real Estate (AGRE) was established in 2008 to build upon Apollo's history of investing in real estate-related sectors such as hotels and lodging, leisure and logistics. AGRE manages a number of debt and equity-oriented real estate investment funds.[67]

Investment vehicles[edit] Private equity funds[edit] Apollo has historically relied primarily on private equity funds, pools of committed capital from pension funds, insurance companies, endowments, fund of funds, high net worth individuals, family offices, sovereign wealth funds and other institutional investors. Since 2008, Apollo has begun investing its seventh private equity fund, Apollo Investment Fund VII, which raised approximately $15 billion of investor commitments.[58] Since inception in 1990, Apollo has raised a total of seven private equity funds, including:[24] Vintage Committed Year Capital ($m) $14,700 $10,200 $3,700 $3,600


Apollo Investment Fund VII[58] 2008 Apollo Investment Fund VI Apollo Investment Fund V Apollo Investment Fund IV 2005 2001 1998

Apollo Investment Fund III Apollo Investment Fund II Apollo Investment Fund I

1995 1992 1990

$1,500 $500 $400

Apollo Investment Corporation[edit]

Type Founded Revenue Net income Total assets Total equity Website

Public company(NASDAQ: AINV) 2004 US$404M (FY 2010)[68] US$263M (FY 2010)[68] US$3.47B (FY 2010)[69] US$1.77B (FY 2010)[69]

Apollo Investment Corporation is a US-domiciled publicly traded private equity closed-end fund and an affiliate of Apollo. AIC was formed to invest primarily in middle-market companiesin the form of mezzanine debt andsenior secured loans, as well as by making certain direct equity investments in companies. The Company also invests in the securities of public companies.[42][43] AIC is structured as a business development company, a type ofpublicly traded private equity vehicle that is designed to generate interest income and long term capital appreciation. AIC historically has not invested in companies controlled by Apollo's private equity funds.[70] AP Alternative Assets[edit]

Type Founded

Public company (Euronext: AAA) 2004


AP Alternative Assets(Euronext: AAA) is a Guernsey-domiciled publicly traded private equityclosedend limited partnership, managed by Apollo Alternative Assets, an affiliate of Apollo Management. AAA was formed to invest alongside Apollo's main private equity funds and hedge funds.[42][43] AAA was launched in August 2006, shortly after Kohlberg Kravis Roberts completed an initial public offering for its $5 billion for its KKR Private Equity Investors vehicle in May 2006.[43][46] Apollo raised a total of $2 billion for AAA including the vehicle's $1.5 billion IPO and a subsequent private placement.[47] AAA's investment portfolio is made up of a mix of private equity and capital marketsinvestments:[71] Portfolio investments[edit] Apollo has been an active private equity investor through the mid-2000s buyout boom. The following is a list of Apollo's most recent and currently active private equity investments. The bulk of these investments are held in Apollo Investment Fund V, VI and VII. Investment Year Company Description Ref.

Berry Plastics

In June 2009, Apollo and Graham Partners announced the acquisition of Berry Plastics Corporation, a maker of 2006 plastic containers, for $2.25 billion from Goldman Sachs Capital Partners and JPMorgan Partners. In March 2007, Apollo announced the $3.1 billion leveraged buyout of costume jewelry retailer, Claires 2007 Stores. In 2008, Claire's experienced financial difficulty amid the slump in consumer spending. In May 2007, Apollo acquired Countrywide plc, the leading provider of residential property related services in 2007 the UK, formerly known as Hambro Countrywide (1988) and Countrywide Assured Group (1998) for $1.05 billion (not related to Countrywide Financial). In August 2006, TNT N.V. announced that it had agreed to 2006 the sale of its logistics division to Apollo for $1.9 billion. The business was re-branded as CEVA in November 2007. Since the beginning of 2008, Apollo has been a significant 2008- acquiror of senior secured loansfrom investment 2009 banks and other financial institutions. In April 2008, Apollo, TPG Capitaland The Blackstone Group completed the acquisition of $12.5 billion of bank loans




Countrywide plc


CEVA Logistics


Debt investments


fromCitigroup. The portfolio comprised primarilysenior secured leveraged loans that had been made to finance leveraged buyout transactions at the peak of the market. Citigroup had been unable to syndicate the loans before the onset of the credit crunch. The loans were reported to have been sold in the "mid-80 cents on the dollar" relative to face value. In late 2008, it was reported that Apollo had received margin callsassociated with the financing of its purchase of certain loan portfolios as the price of the loans decreased. In March 2012 Apollo announced plans to acquire the 2012 resorts chain for $703 million. Reports indicated the chain had not turned a profit since 2008. On December 19, 2006, Apollo and TPG Capital announced an agreement to acquire the gaming 2006 company for $27.4 billion, including the assumption of existing debt. Hexion was formed in 2005 through the merger of Borden Chemical, Inc., Resolution Performance Products LLC, and Resolution Specialty Materials LLC, and the acquisition of Bakelite AG. Hexion announced in July 2007 that it was acquiring Huntsman Corporation, a major specialty chemicals company, in a $6.5 billion leveraged buyout. 2005 Hexion announced in June 2008 it would refuse to close the deal, prompting a series of legal actions. The transaction was officially terminated on December 14 after a settlement between Hexion and Huntsman, wherein they were required to pay Huntsman $1 billion to drop fraud charges that would have potentially sent the CEO of Apollo to prison. In October 2006, Apollo announced a $990 million 2006 leveraged buyout of Jacuzzi Brands, the manufacturer of whirlpool baths. In November 2012, McGraw Hill announced that it had 2012 agreed to the sale of its education division to Apollo for $2.5 billion. 2006 In June 2006, Apollo acquired General Electric's Advanced Materials (Silicones & Quartz) business in a deal valued at

Great Wolf Resorts


Harrah's Entertainment


Hexion Specialty Chemicals


Jacuzzi Brands


McGraw-Hill Education Momentive Performance




approximately $3.8 billion. In April 2007, Apollo acquired the US aluminum business of the mining company Xstrata for $1.15 billion. The 2007 aluminum business, Noranda Aluminum, includes a primary smelter and three rolling mills in Tennessee, North Carolina and Arkansas along with other operations.

Noranda Aluminum


In January 2008, Apollo completed a $1 billion investment Norwegian Cruise Line 2008 in the cruise line operator to support a recapitalization of the company's balance sheet. In February, 2007, Apollo acquired the luxury cruise line 2007 and provided additional capital to fund the expansion of the company with the purchase of two new cruise ships. In December 2006, Apollo announced an $8.5 billion buyout of the real estate franchisor that owns Coldwell Banker, Century 21 and Sothebys International Realty. The transaction closed in April 2007 and was delisted from theNew York Stock Exchange. As the housing market 2006 crash accelerated in 2008, Realogy faced financial pressures relating to its debt load. In November 2008, Realogy launched anexchange offer for a portion of its debt to provide additional flexibility, prompting a lawsuit from Carl Icahn. In February 2008, Apollo purchased the luxury cruise line from Carlson Companies for $1 billion. Following the 2008 purchase, Apollo made public their plans to order a new ship for Regent. In May 2006, Apollo announced the acquisition of the manufacturer of precision motion technology products, 2006 primarily focused on power transmission, from private equity firmThe Carlyle Group for $1.825 billion. In February 2007, Apollo announced the acquisition of the Smart & Final chain of warehouse style food and supply stores. In June 2007, Smart & Final completed the 2007 acquisition of the Henry's Marketplace chain of "farmers market" style food retailers from Wild Oats Markets as part of that company's acquisition by Whole Foods Market. In 2011, the Henry's chain was merged


Oceania Cruises



Coldwell Banker Sotheby's International Realty Century 21 Real Estate


Regent Seven Seas Cruises




Smart & Final

Henry's Marketplace Sprouts Farmers


[98] [99]


with Sprouts Farmers Market, which, like the Henry's markets, had been founded by Henry Boney.

In May 2008, Apollo invested in Vantium, a company that Vantium Management 2008 buys residential mortgage assets as part of a strategy to profit from the housing market crash. In 2006, Apollo acquired International Paper'scoated and supercalendered paper business for $1.4 billion, renaming the business, Verso Paper. Verso 2006 has been the second largest producer for the North American magazine publishing and catalog/commercial print markets. In May 2008, Verso was able to complete an initial public offering of stock.


Verso Paper


ther investments include Connections Academy and Unity Media GMBH. Affiliated businesses[edit] From its inception, Apollo built as part of a network of affiliated businesses focusing onprivate equity and a variety of distressed investment strategies. Lion Advisors[edit] Lion Advisors (or Lion Capital), which was founded at the same time as Apollo in 1990, focused on investment management and consulting services to foreign institutional accounts targeting investments in public and private high yield debt securities in the US. In 1992, Lion entered into a more formal arrangement to manage the $3 billion high-yield portfolio for Credit Lyonnais which together with a consortium of other international investors provided the capital for Lion's investment activities. The Lion business would ultimately be replaced by Ares Management.[103] Ares Management[edit] Main article: Ares Management

Type Founded Website

Private 1997, 2002 (independent)

Ares Management, founded in 1997, was initially established to manage a $1.2 billion market value collateralized debt obligation vehicle. Ares would grow to manage a family ofcollateralized loan obligation (CLO) vehicles that would invest in capital markets-based securities including senior

bank loans and high-yield and mezzanine debt. Ares was founded by Antony Ressler and John H. Kissick, both partners at Apollo as well as Bennett Rosenthal, who joined the group from the global leveraged finance group at Merrill Lynch.[104] Ares I and II which were raised were structured as market value CLOs. Ares III though Ares X were structured as cash flow CLOs. In 2002, Ares completed a spinout from Apollo management. Although technically, the founders of Ares had completed a spinout with the formation of the firm in 1997, they had maintained a close relationship with Apollo over its first five years and operated as the West Coast affiliate of Apollo. Shortly thereafter, Ares completed fundraising for Ares Corporate Opportunities Fund, a special situations investment fund with $750 million of capital under management.[103][104] In 2004, Ares debuted a publicly traded business development company, Ares Capital Corporation (NASDAQ:ARCC).[105] In 2006, Ares raised a $2.1 billion successor special situations fund (Ares Corporate Opportunities Fund II).[104] Project Portfolio Management Managing the Project Pipeline

Project portfolio management is the coordinated and controlled management of a portfolio of projects to achieve a set of business objectives. How to Determine the Number of Projects to Deliver in a Given Year Every year there is a mad scramble by most companies to secure budgets internally for projects they intend to do for the following financial year. Typically, companies are flooded with requests from various departments to deliver capabilities and benefits through a variety of projects and programmes. However, companies are acutely aware that there has to be a balance between the long wish list of things to do, and the organisation's actual ability to deliver them. The purpose of this article is outline a number of techniques which on their own or collectively can assist companies to overcome this dilemma. Trends in Product and Portfolio Management: The Latest Five Game Changers The face of product and portfolio management has changed enormously over the last 25 years and the tools that are now available enable product managers to work more quickly and efficiently than ever before. Speaking at the recent Pipeline 2011, the online product development conference,

Louise Allen and Carrie Nauyalis of Planview discussed what they see as the latest five 'game changers' in product management and why each one is critical in bringing a project or product to market. Process Driven PPM From R&D to Customer Service, effectively serving the Value Chain is an integral part of an organisation's success when bringing new products to market. The fact is, many organisations run their New Product Development (NPD) projects in siloed environments not taking into account all of the elements that can impact a product's success. NPD projects do not only live in the world of marketing and engineering. NPD projects in many cases need to incorporate the strategic objectives of executives, the demand of customers and the bottom line of operations and finance in order to realise their success. The Value and Costs of not Doing a Project are not Necessarily Zero If you don't know the values and costs of not executing your projects then you're probably not maximising the value of your project portfolio and you may be working on the wrong projects. Most project portfolio managers are not including the actual values and costs of not executing a project in their project portfolio analyses. Hence, they may be dramatically over or under estimating their actual portfolio value and cost and choosing the wrong set of projects. How to be Ready for the Recovery CNN recently published an article about the aftermath of the recession, claiming that the economy is "finally back in gear." What does this mean for businesses like yours? Projects that were sidelined for the past year or two could come off the bench, and there might be more money to go around. Great news, right? It depends on how ready you are to make the most of this new opportunity. Are you confident that you will be able to put the right people on these projects and make the right decisions about how to spend this money? Project Ranking: The Heart of Project Portfolio Management Project ranking is at the heart of project portfolio management (PPM). A good project portfolio ranking system should not only make the job much easier and faster, but also yield a superior result over doing it manually or with simple spreadsheets. The Point and Pitfalls in Portfolio Management Corporate budgeting is an obscure process. Usually it involves padding budgets to accommodate for across-the-board cuts, and committees of corporate officers finalising figures for projects executed far below them. Unhappily, the team making funding choices tends to lack the information needed to accurately analyse what they are actually financing. The team must answer questions that directly affect corporate strategy. Which projects are critical to corporate goals? Which provide the best "bang for the buck?" How should the projects be prioritised to maximise utilisation of resources? What is the risk of each project and how should it be handled? The Top 6 Things to Consider When Choosing a PPM Solution

According to a recent article in a leading technology magazine, the demand for project and portfolio management (PPM) solutions is rising in response to the weakened economy. Many businesses are choosing to implement PPM solutions in order to "identify which IT projects are mission critical and to help them execute those projects as efficiently as possible." These customers have also found that PPM solutions offered as software-as-a-service (SaaS) are both more affordable and easier to deploy than traditional ones. A Corporate Project Selection Process In my last article I mentioned that there are project management solutions to alleviate some of the pains that corporations can endure during a time of financial concerns. Strong project management leadership should be involved in the project selection process. In this article, I will review business drivers and project assessments that may be considered in project selection. While the project selection process is viable and repeatable, it requires support from the top down in order to be successful. Project Portfolio Management: Managing the Project Pipeline For most service departments the demand for new projects will occasionally outweigh the department's capacity to do them. Whether it's due to financial constraints or skills being completely exhausted elsewhere, sometimes you just have to say "no." Saying "no" is easy, it's deciding who to say "no" to. Projects that bring the highest return on investment from the scarce resources available must be pushed forwards. Projects that drain resources and eat up the budget must be discarded, or at the very least, put on hold. So how do you decide which projects stay and which ones go? Distinguishing Portfolio Management, Programme Management and Project Management There is often a misunderstanding, and hence a mixed and overlapping use of terms, when it comes to programme management. Sometimes a programme is called a project. Sometimes a project is called a programme. In addition, sometimes project portfolio and programme are mistakenly used interchangeably. This article is intended to clarify the main differences and to distinguish the unique aspects of project portfolios, programmes, and projects. Building the Project Firing Squad Regardless of where your IT organisation has progressed in the evolution from a utility like service to a executor of business strategy, the bread and butter of most IT organisations is the successful execution of projects: non-recurring, limited duration activities designed around completing a defined task. As organisations have grown savvier about project management, successful execution is on the rise, however choosing the right projects to deliver remains a challenge for many companies. How Often Should You Review the Project Portfolio? You've got a ton of projects. You can't do them all at once because you don't have the people to do them. You know better than to ask people to multi-task on more than one project, no one will get anything done. One tactic is to organise the projects into a portfolio and rank them by priority. What is Project Portfolio Management?

Project Portfolio Management is about more than running multiple projects. Each portfolio of projects needs to be assessed in terms of its business value and adherence to strategy. The portfolio should be designed to achieve a defined business objective or benefit. Project management guru Bob Buttrick summarised it when he said; "Directing the individual project correctly will ensure it is done right. Directing 'all the projects' successfully will ensure we are doing the right projects." The Four Levels of Project Success: The Project Management Maturity Matrix Project based organisation have become more common over the last decade, meaning the work they do is split into programmes of projects designed to deliver the organisation's strategy. Good management of these projects is essential if the organisation is going to succeed. Project Management Revolution or Evolution As project portfolio management continues to gain momentum in all sectors of the economy, one question that continues to plague my thoughts is whether PPM represents a significant departure from traditional management techniques, or does it reflect an evolutionary step, a natural addition to traditional project management techniques? Portfolio, Programme and Project Management Maturity Model - a Guide to Improving Performance The Portfolio, Programme and Project Management Maturity Model (P3M3) is a reference guide for structured best practice. It breaks down the broad disciplines of portfolio, programme and project management into a hierarchy of Key Process Areas (KPAs). The hierarchical approach enables organisations to assess their current capability and then plot a roadmap for improvement prioritised by those KPAs which will make the biggest impact on performance. Most articles on portfolio, programme and project management maturity models focus on the 'accreditation' aspects of the model. This article focuses on how to use the model as a framework for process improvement by applying change management techniques from Six Sigma. Portfolio, Programme and Project Management Maturity Model (P3M3) - OGC The P3M3 describes the portfolio, programme and project-related activities within key process areas that contribute to achieving a successful project outcome. The P3M3 recognises not only the programme and project management activities being carried out at the individual programme and project level, but also those activities within an organisation that provide focus and help sustain effort to build a programme and project infrastructure of effective programme and project approaches and management practices. In the absence of an organisation-wide programme and project infrastructure, repeatable results depend entirely on the availability of specific individuals with a proven track record and this does not necessarily provide the basis for long-term success and continuous improvement throughout the organisation. "Project portfolio management organizes a series of projects into a single portfolio consisting of reports that capture project objectives, costs, timelines, accomplishments, resources, risks and other critical factors. Executives can then regularly review entire portfolios, spread resources appropriately and adjust projects to produce the highest departmental returns." - Unknown Author