Apollo Global Management is preparing to wrap up fundraising this month at between USD 2bn and USD 2.5bn for its third flagship infrastructure vehicle, sources said.

The New York-based investment group originally aimed to raise USD 4bn to USD 5bn for the third fund, the Apollo Infrastructure Opportunities Fund III (AIOF III).

The manager’s second fund, AIOF II, closed in 2021 on USD 2.54bn, following a USD 1bn first vehicle raised in 2018.

Dylan Foo, who led Apollo’s infrastructure equity team when it began marketing AIOF III in 2022, was fired by Apollo in August 2023.

Apollo’s infrastructure equity strategy is currently headed by both Harry Seekings, who joined the firm early last year from InfraRed Capital Partners, and ex-Riverstone Holdings executive Olivia Wassenaar.

The 12-year, mid-market AIOF III is looking to make 10 to 15 equity investments in the US and Europe of between USD 100m and USD 1bn.

The Article 8 fund targets 15%-18% gross IRR – equivalent to 11%-14% net IRR – and 4%-6% cash yield, public filings show, which also state that AIOF III charges a 1.5% management fee during the fund’s initial phase.

Apollo delivered 26% gross IRR across its first two infrastructure equity funds, which invested some USD 3bn across 26 deals, filings show.

Apollo this month agreed to invest EUR 3.2bn to support RWE’s investment programme for transmission operator Amprion; while last month it agreed to buy a majority stake in Stream Data Centers in the US.

The firm is also currently fundraising for its 2023 vintage Apollo Clean Transition Equity Partners II.

Apollo declined to comment.