Apollo has struck a deal to buy Bridge Investment Group in an all-stock deal worth around US$1.5 billion.

The deal has widespread implications for Canada’s commercial real estate investment and finance markets. Salt Lake City-based Bridge oversees US$50 billion in assets globally, with a focus on residential and industrial properties. Bridge’s services also include real estate-backed credit financing.

New York-based Apollo has extensive Canadian commercial real estate holdings and finance investments.

The deal will nearly double Apollo’s total real estate holdings, pushing them past US$110 billion.

In January, Canada’s GFL Environmental agreed to sell a majority stake in in environmental-services business to affiliate of Apollo and BC Partners for C$8 billion.

Vaughan, Ont.-based GFL owns, operates and manages a diverse network of solid and liquid-waste disposal, transfer and recycling facilities throughout North America. In the summer of 2024, the Toronto-based Hudson Bay Company, which ownssecured a US$1.15-billion fully committed term loan financing from investment funds and accounts managed by affiliates of Apollo.

Bridge stockholders will receive 0.07081 shares of Apollo stock for each of their shares at US$11.50 per share. Post-deal, Bridge will run as its own platform under Apollo’s asset management umbrella, keeping its brand and leadership intact. The deal is expected to be immediately accretive to Apollo’s fee-related earnings upon closing.

The acquisition will provide Apollo with immediate scale to its real estate equity platform and enhance its origination capabilities. The transaction is expected to close in the third quarter of 2025. Bridge management and affiliates, owning approximately 51.4% of voting power, have agreed to vote in favour of the transaction.

“Their business will complement and further augment our existing real estate capabilities, and we believe we can help scale Bridge’s products by leveraging the breadth of our integrated platform,” said Apollo partner and co-head of equity David Sambur.

BofA Securities, Citi, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Newmark Group are acting as financial advisors, Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel and Sidley Austin LLP is acting as insurance regulatory counsel to Apollo. JPMorgan Securities LLC is serving as financial advisor to Bridge and Latham & Watkins LLP is acting as legal counsel. Lazard is serving as financial advisor to the special committee of the Bridge board of directors and Cravath, Swaine & Moore LLP is acting as legal counsel.

Pictured: Bridge Investment Group’s recently acquired Glen 91 in Glendale, Ariz.

With files from Joe Palmisano, Connect Money