Athene Holding Ltd. [NYSE: ATH] disclosed on Thursday that it has inked a definitive agreement to purchase Foundation Home Loans (FHL). FHL had a £3 billion portfolio of specialist buy-to-let and owner-occupied mortgages on its balance sheet as of June 2021. The execution of the purchase agreement is dependent on the fulfillment of traditional conditions. It also involves permission by the Financial Conduct Authority.
The decision to acquire FHL and this investment will be handled by the team at Apollo Global Management, Inc. (NYSE: APO). APO is the strategic asset management partner of Athene. Apollo and Athene anticipate that FHL will continue to be a leader in creating high-quality residential mortgage loans. Moreover, it also offers Athene appealing opportunities for investment in high-quality yield assets.
Shares of Athene Holding Ltd. [NYSE: ATH] shares were trading up 0.24% as the firm has gained +0.05 at the time of writing on Thursday. Athene Holding Ltd.’s share price went from a low point around $30.05 to briefly over $70.37 in the past 52 weeks, though shares have since pulled back to $65.61. ATH market cap has remained high, sitting $12.34 billion at the time of writing.
Furthermore, this deal continues the long-running strategy of the firm. The strategy is to work with Apollo to recognize and invest in alluring businesses which add asset sourcing abilities to its investment portfolio. Moreover, the firm expects that its investment will assist FHL to attain its full potential while growing its asset sourcing capabilities.