Apollo and Motive Partners Have Formed a Strategic Partnership to Take Advantage of the Fintech Revolution
Apollo Global Management, Inc. | July 02, 2021
Apollo Global Management, Inc. and Motive Partners, a specialty private equity firm concentrating on financial technology investments, announced a strategic and financial cooperation today to take advantage of considerable technological transformation and innovation in the financial services industry. Client investment prospects will be improved as a result of the agreement, and both platforms' growth will be accelerated. The transaction's conditions were not revealed.
Apollo and its affiliates will become limited partners in Motive managed vehicles as part of the strategic agreement, which would see Apollo purchase up to a 24.9 percent minority ownership in Motive's management firm. Motive's capacity to execute on its differentiated investment approach within financial technology has improved as a result of these commitments, with expanded ability to trade on its proprietary pipeline.
Motive will serve as a strategic innovation partner to Apollo, its affiliates, and the funds' portfolio companies, allowing Apollo to expedite innovation and growth. Motive Create, the company's in-house innovation team, will collaborate with Apollo on a number of fronts, including platform technology innovation, new product creation and distribution, and investment origination.
"There is a technology-driven shift going in financial services, and Apollo is well positioned to occupy the single best position in this changing ecosystem," said Marc Rowan, Chief Executive Officer of Apollo. Our efforts to expand and improve technology capabilities across our entire platform—broadening distribution across new and existing channels and developing new product offerings for our asset management and retirement services businesses—will be significantly aided by Rob and the Motive teams' exceptional financial technology expertise and network. Apollo's growth strategy is around innovation, and this partnership exemplifies our desire to remain at the forefront of technological advancements.
"Since our beginning, we have prided ourselves on having an unprecedented degree of skill, knowledge, and access in the financial technology ecosystem," said Rob Heyvaert, Founder & Managing Partner of Motive Partners. As financial technology comes to cross with every industry on the planet, now is an excellent time to form a collaboration with a group that shares our goals and can help us seize the tremendous market potential that lies ahead. It's an honour to work with Marc, Jim, Scott, Gary, and the rest of the Apollo crew, for whom I have a tremendous deal of admiration. Motive Create's progress demonstrates our combined understanding and dedication to creating value in financial technology through the use of operating and inventing expertise.”
The partnership between Apollo and Motive Create will take advantage of the group's financial services innovation expertise and technology capabilities to help the companies capitalise on what Motive Partners estimates to be a nearly $10 trillion (source: Motive Partners) financial technology market opportunity over the next decade.
Both companies anticipate that the financial services business will continue to change dramatically over the next decade, with a focus on purpose, inclusivity, digital efficiency, and connection. The conditions for a fundamental rethink of how and where key functions are performed have been established by technological and institutional transformations over the preceding decade, which have been supercharged during the past year. Other industries are progressively incorporating financial technology and services into their product offerings, resulting in a boom in opportunities for financial technology players and investors, as well as the emergence of a new breed of platform juggernauts. Apollo and Motive's strategic relationship is positioned to speed the integration of these technologies, allowing them to jointly address this large market potential while also enhancing their individual portfolios.
There will be no modifications in the management, strategy, investing process, or day-to-day operations of Motive or any Motive administered vehicles, including Motive Capital Corp., aside from the essential components of the strategic alliance.
Apollo is a global alternative asset management with a rapid rate of expansion. With a focus on three business strategies: yield, hybrid, and opportunistic, we attempt to provide our customers with excess return at every point along the risk-reward spectrum, from investment grade to private equity. We fulfil our clients' retirement income and financial return needs, as well as provide innovative capital solutions to businesses, through our investing activity across our fully integrated platform. Our patient, innovative, and intelligent approach to investing links our clients, the businesses in which we invest, our employees, and the communities in which we have an effect to expand opportunity and produce great outcomes. Apollo had approximately $461 billion of assets under management.
About Motive Partners
Motive Partners is a specialist private equity firm based in New York City and London that focuses on growth equity and buyout investments in software and information services companies based in North America and Europe, with five primary subsectors: Banking & Payments, Capital Markets, Data & Analytics, Investment Management, and Insurance. Motive Partners creates long-term value in financial technology companies by bringing differentiated experience, connectivity, and capabilities.