Apollo Is Said to Confidentially File for New Pipeline SPAC

(Bloomberg) -- Apollo Global Management LLC has formed an energy-focused blank-check company to invest in oil and gas pipeline infrastructure in North America, according to people familiar with the matter.

The New York-based firm has confidentially registered a special purpose acquisition company, or SPAC, with the U.S. Securities and Exchange Commission, said the people, who asked to not be identified because the matter isn’t public. Apollo has a management team in place for the SPAC, which aims to raise capital this year, the people said.

A spokesman for Apollo declined to comment.

Carlyle Group LP, TPG, Riverstone Holdings and other private equity firms have teamed up with experienced oil and gas executives in the last three years to create energy SPACs, which raise money from public investors for buying a target they haven’t identified yet.

SPACs have become a popular way for buyout firms to invest in the U.S. energy sector while offering an alternative form of financing to companies emerging from the oil rout.

Most have focused on oil and gas exploration, such as TPG Pace Energy Holdings Corp., which TPG formed with Steve Chazen, the former chief executive of Occidental Petroleum Corp. TPG Pace announced plans in May to buy drilling acreage from EnerVest Ltd.

Apollo, co-founded by Leon Black, is an active player in North American energy. Last week, one of its portfolio companies announced a merger with another company to create a new Permian Basin explorer called DoublePoint Energy LLC. Apollo is also interested in buying some of BHP Billiton Ltd.’s U.S. shale assets, people familiar with the matter said last week.

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