Company: ARI
Filing Date: 2025-04-04
Form Type: 40-APP/A
Source: 0001193125-25-073269
Chunk: 24

Company: Apollo Commercial Real Estate Finance, Inc.
Filing Date: 2025-04-04
Form: 40-APP/A
Chunk 24
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 Order will expire on the effective date of that rule.

| IV. | STATEMENT IN SUPPORT OF RELIEF REQUESTED |

Applicants submit that allowing the Co-InvestmentTransactions described by this Application is justified on the basis of (i) the potential benefits to the Regulated Funds and their respective shareholders and (ii) the protections found in the terms and conditions set forth in this Application. A. Potential Benefits to the Regulated Funds and their Shareholders Section 57(a)(4) and Rule 17d-1(as applicable) limit the ability of the Regulated Funds to participate in attractive co-investmentopportunities under certain circumstances. If the relief is granted, the Regulated Funds should: (i) be able to participate in a larger number and greater variety of investments, thereby diversifying their portfolios and providing related risk-limiting benefits; (ii) be able to participate in larger financing opportunities, including those involving issuers with better credit quality, which otherwise might not be available to investors of a Regulated Fund’s size; (iii) have greater bargaining power (notably with regard to creditor protection terms and other similar investor rights), more control over the investment and less need to bring in other external investors or structure investments to satisfy the different needs of external investors; (iv) benefit from economies of scale by sharing fixed expenses associated with an investment with the other Participants; and (v) be able to obtain better deal flow from investment bankers and other sources of investments. B. Shareholder Protections Each Co-InvestmentTransaction would be subject to the terms and conditions of this Application. The Conditions are designed to address the concerns underlying Sections 17(d) and 57(a)(4) and Rule 17d-lby ensuring that participation by a Regulated Fund in any Co-InvestmentTransaction would not be on a basis different from or less advantageous than that of other Participants. Under Condition 5, each Adviser (and each Affiliated Entity that is not advised by an Adviser) will adopt and implement Co-InvestmentPolicies that are reasonably designed to ensure that (i) opportunities to participate in Co-InvestmentTransactions are allocated in a manner that is fair and equitable to every Regulated Fund; and (ii) the Adviser negotiating the Co Investment Transaction considers the interest in the Transaction of any participating Regulated Fund. The Co-InvestmentPolicies will require an Adviser to make an independent determination of the appropriateness of a Co-InvestmentTransaction and the proposed allocation size based on each Participant’s specific investment