Apollo Global Management LLC has agreed to acquire a 20 percent stake in Brazilian special situations investment firm Starboard Restructuring Partners, the two firms said in a statement.
The deal value was not disclosed. Apollo, which managed $249 billion last December, will have the right to increase its stake in the future. The buyout firm is also investing in a new distressed asset fund which is being raised by Starboard.
Starboard has so far raised $275 million to the fund and expects to reach up to $325 million by April.
The acquisition underscores Apollo’s interest in Brazilian stressed assets after Brazil’s harshest recession in decades.
Starboard´s founder and managing partner Fabio Vassel expects the fund to acquire up to six distressed medium-sized companies in sectors such as chemical, beverages, agribusiness and construction. “Our access to capital is significantly strengthened with the agreement,” Vassel said.
“Starboard has the product and market expertise that Apollo looks for in investment partners,” said Rob Ruberton, global head of illiquid credit at Apollo, in the statement.
Vassel and partner Warley Pimentel founded Starboard last year after both left bank Brasil Plural SA. Its first special situations fund invested $55 million in firms such as mining company Mineracao Caraiba SA and infrastructure group Inepar SA Industria e Construcoes.