Apollo Global Management is investing $1.5 billion into a newly created private fund by Singapore-based Keppel Ltd. This strategic move aims to capitalize on Southeast Asia’s booming offshore energy market, driven by high utilization rates and long-term demand.
📊 Key Deal Metrics & Structure
Initial Divestment: Keppel will sell 6 operational oil rigs to the new Keppel Offshore Fund for S$1.2 billion this year, freeing up $478 million in cash.
Total Program Scope: Part of a broader $2.87 billion (S$3.7 billion) strategic plan to divest 10 legacy rigs held by subsidiary Rigco Holding.
Fund Contribution: Keppel will indirectly contribute 50% of the capital to the new private fund.
AUM Growth: The initial 6-rig divestment adds approximately S$3.9 billion to Keppel’s total funds under management.
Future Phasing: 4 additional rigs (currently under construction) are targeted for divestment between 2027–2028, expected to generate an extra $988 million in cash proceeds.
💡 Strategic & Financial Impact
For Keppel: Accelerates the monetization of non-core assets to reduce debt, fund new investments, and reward shareholders—though it will record a one-time accounting loss of S$92 million in its upcoming H1 results.
For Apollo: Secures an investment-grade entry into the region’s offshore energy sector, leveraging Keppel’s operational expertise to deliver attractive long-term returns.