Apogem Tops Target With $372M Real Assets Fund IV

Apogem Capital has closed Apogem Real Assets Fund IV with $372 million in commitments, beating its $300 million target. The total includes $12 million from Apogem employees. The firm also raised another $100 million for a separate real assets co-investment account.

Fund IV is about 40% larger than its predecessor. That fund, PA Real Assets Fund III, closed in September 2022 with about $265 million, above its $200 million target.

The new fund takes a thematic, value-oriented approach to natural resources investing. It makes co-investments, direct investments and secondary investments in the lower-middle and middle markets.

It is targeting energy, natural resources, infrastructure and related services. Most of its investments will be in North America and other member countries of the Organization for Economic Cooperation and Development. The fund plans to partner with sponsors and management teams around long-term themes, including energy security and reliability, growing power demand and aging infrastructure.

“We believe years of underinvestment in private real assets combined with the rising and shifting demand for natural resources have resulted in reduced competition for high-quality assets at attractive valuations,” said Zac McCarroll, managing director and head of real assets at Apogem.

Existing limited partners strongly supported the fund. It also drew commitments from public and private pension plans, family offices and registered investment advisers.

“Long-term trends across energy, power and infrastructure are creating a broad and evolving opportunity set,” said Josh Niedner, Apogem’s chief executive officer.

Apogem launched its real assets platform in 2014 and has deployed about $1 billion through the strategy.

The firm was formed in 2022 by combining GoldPoint Partners, Madison Capital Funding and PA Capital. It is a wholly owned subsidiary of New York Life and managed about $44 billion in assets as of June 30.