Challenger (ASX:CGF) and Apollo Global Management (NYSE:APO) have reaffirmed the strength of their business relationship while announcing that Apollo has reduced its shareholding in Challenger from 20.1% to 9.9%.
The move follows a partnership that began in July 2021, when Apollo first increased its equity stake in Challenger to 20%.
Challenger and Apollo are committed to continuing their collaborative initiatives, including an asset origination and distribution partnership.
The partnership, formed in November 2023, allows Challenger Life access to Apollo's high-quality direct asset origination capabilities, aiming to enhance customer annuity rates and returns for Challenger shareholders.
"Challenger and Apollo have developed a collaborative partnership that supports our broader growth strategy. We look forward to continuing this relationship and pursuing a range of initiatives to deliver value for Challenger shareholders, including through asset origination and distribution of Apollo’s high-quality products in Australia," said Nick Hamilton, Managing Director and CEO of Challenger.
Apollo's decision to reduce its ownership supports its redeployment of capital to other growth opportunities.
The strategic initiatives, including the distribution of Apollo's Aligned Alternatives strategy to Australian retail and wholesale clients, will continue unaffected by the change in shareholding.
"We believe Challenger is a unique platform to offer the next generation of investment products to retirees in Australia. As one of our most important long-term strategic partners globally, we look forward to continuing to collaborate on asset management and product design," stated Matthew Michelini, Apollo's head of Asia-Pacific.
Additionally, MS&AD Insurance Group will remain Challenger's largest shareholder with a 15.1% stake, unaffected by Apollo's reallocation.
MS&AD recently extended its strategic reinsurance partnership with Challenger Life, affirming its commitment to support Challenger's growth.