Matthew Michelini has stepped down as Apollo Global Asset Management’s representative on the Challenger Limited board, effective immediately.
The resignation follows Apollo cutting its shareholding in Challenger from 20.1 per cent to 9.9 per cent earlier this month, with the aim to redeploy capital to other growth opportunities.
As such, Apollo no longer holds the minimum percentage of issued capital – 15 per cent – to maintain its seat on the Challenger board.
“On behalf of the board, I thank Matt for his valuable contribution,” Challenger chair Duncan West said in a statement to the ASX.
“Challenger looks forward to continuing to work closely with Matt and the broader Apollo team to deliver long-term value for Challenger’s shareholders.”
Michelini, who is partner and head of Asia-Pacific at Apollo, added that Challenger remains one of the firm’s “most important long-term strategic partners globally”.
“We see meaningful opportunity to continue to support the business as it enters its next phase of growth,” Michelini said.
“We are committed to continuing to work closely to provide sources of safe yield via our global asset management capabilities for both the insurance balance sheet and for Fidante to distribute into the local market.”
Despite Apollo’s sizeable divestment, both companies have reaffirmed their commitment to pursuing a range of strategic initiatives as part of their ongoing partnership, including asset origination and distribution opportunities.
Namely, Challenger Life will continue to have access to Apollo’s direct asset origination capabilities, which were secured under a partnership the two formed in November 2023. Through this partnership, Challenger said it has invested in Apollo’s private markets and private equity strategies.
Moreover, since September 2023, Challenger has exclusively distributed Apollo’s Aligned Alternatives (AAA) strategy to Australian retail and wholesale clients and will continue to do so, it confirmed.
“Challenger and Apollo have developed a collaborative partnership that supports our broader growth strategy,” Challenger managing director and CEO Nick Hamilton said earlier this month.
“We look forward to continuing this relationship and pursuing a range of initiatives to deliver value for Challenger shareholders, including through asset origination and distribution of Apollo’s high-quality products in Australia.
“Apollo’s re-evaluation of its investment in our business will also significantly increase Challenger’s free float and improve trading liquidity.”
