Apollo writes down $500m on casino investment

Apollo has taken a $500m (€339m) writedown on its investment in Harrah’s, the largest casino group in the world, which it bought with TPG Capital for $17bn in January.  

Apollo disclosed the writedown as its listed Amsterdam fund, Apollo Alternative Assets (AAA), released second quarter results. AAA announced that Apollo’s stake in Harrah’s had fallen to $134.3m, almost a fifth lower than the $165.6m Apollo paid when it first invested.

TPG is believed to have written down a similar amount on its stake in Harrah’s, which owns Caesar’s Palace in Las Vegas.

At this point the writedown is only a paper loss, as Apollo will hold Harrah’s for a number of years, during which its valuation could bounce back, but Apollo had to cut the fair value of its investment to reflect its current value.

Apollo said it was still open to following the lead of buyout rival Kohlberg Kravis Roberts and delisting AAA before listing the entire Apollo group in New York, but added that it had not settled on any definitive plans at this stage.