Apollo reduces Challenger stake, loses board presence

US-based investment manager, Apollo Global Asset Management has reduced its shareholding in Challenger Limited, resulting in it losing its seat on the Challenger board.

However, both Apollo and Challenger have committed to continuing to pursue the strategic initiatives which gave rise to the Apollo shareholding.

In an announcement released to the Australian Securities Exchange (ASX) Challenger said that Apollo’s representative on the board, Matthew Michelini had stepped down following the reduction in Apollo’s shareholding below the minimum 15% to hold a seat.

The statement said that Challenger and Apollo “remain committed to pursuing a range of strategic initiatives as part of their ongoing commercial partnership, including asset origination and distribution opportunities”.

Commenting on the change, Challenger chair, Duncan West thanked Michelini for his contribution and said the firm looked forward to working closely with the broader Apollo team to deliver long term value to Challenger shareholders.

Michelini said Challenger is one of Apollo’s most important long-term strategic partners globally.

“We are committed to continuing to work closely to provide source of safe yield via our global asset management capabilities for both the insurance balance sheet and for Fidante to distribute into the local market,” he said.