Apollo Residential Mortgage filed an S-11 yesterday with the Securities and Exchange Commission (SEC) to offer 10 million shares in its IPO.
The firm, according to the filing, is a newly organized residential real estate finance company that intends to buy U.S. residential mortgage assets. Apollo plans to selectively construct a portfolio of assets that will initially comprise of agency MBS, but over time will be diversified to cover a broader range of other residential mortgage assets such as non-agency MBS, residential mortgage loans and other residential mortgage assets.
"We believe that the diversification of our portfolio of assets over time, our expertise within our target asset classes and the flexibility of our strategy will enable us to achieve attractive risk-adjusted returns under a variety of market conditions and economic cycles," the company stated in the SEC filing.
The firm will be externally managed and advised by ARM Manager, a recently formed indirect subsidiary of Apollo Global Management.
Founded in 1990, Apollo is a global alternative asset manager with a contrarian and value-oriented investment approach, with total assets under management of over $67 billion as of December 31, 2010.
To view the entire filing, please click this link.