Apollo Global Management is in advanced negotiations to acquire Atlantic Aviation from KKR in a transaction valued at approximately $10 billion, according to multiple sources. The deal would represent one of the year's largest private equity secondary buyouts and mark Apollo's second billion-dollar-plus acquisition announcement this week, following its $3.7 billion agreement to acquire Nippon Sheet Glass.

Atlantic Aviation operates roughly 100 fixed-base operations across North America, providing fueling, hangar, and maintenance services to private and commercial aviation. KKR acquired the platform in 2021 for approximately $4.5 billion from Macquarie Infrastructure Partners, consolidating what was then a fragmented operator base. Under KKR's ownership, Atlantic expanded its footprint by 18 facilities and increased annual EBITDA margins from 31% to an estimated 37%, according to industry participants. The business generates approximately $600 million in annual EBITDA on revenue exceeding $1.5 billion, driven by long-term contracts with fractional jet operators, corporate flight departments, and scheduled carriers serving secondary markets.

The transaction structure under discussion values Atlantic at approximately 16.7x trailing EBITDA, a premium to the 14-15x multiples paid for comparable aviation services platforms over the past 18 months. Apollo's willingness to pay that multiple reflects two factors: Atlantic's oligopolistic position at constrained airport locations where new FBO construction faces regulatory and capital barriers, and the platform's cash conversion rate exceeding 85% of EBITDA. Apollo has allocated more than $28 billion to infrastructure and hard-asset strategies in the past 24 months, a deployment pace 40% above its 2019-2021 average. Atlantic fits the pattern—predictable cashflows anchored to physical infrastructure with replacement cost barriers and inflation-linked pricing.

The timing matters for broader credit allocation. Apollo's insurance subsidiary, Athene, held $239 billion in assets under management as of Q3 2024, with approximately $47 billion in unallocated dry powder across its credit and equity vehicles. Atlantic Aviation's cashflows could anchor a structured credit facility exceeding $6 billion, allowing Apollo to layer its own balance sheet into the deal economics while offering limited partner co-investment at reduced leverage multiples. KKR, meanwhile, realizes a 2.2x gross multiple on invested capital in roughly 42 months, an IRR above 25% that exceeds the firm's targeted private equity returns by 400 basis points.

Operators should monitor three developments: Apollo's formal offer submission, expected within 14 days; potential competing bids from Blackstone or Brookfield, both of which evaluated Atlantic during a limited 2023 process; and the Federal Aviation Administration's review of ownership transfer applications for Atlantic's airport lease agreements, a process typically requiring 90-120 days. Aviation services M&A volume has exceeded $18 billion year-to-date, already surpassing full-year 2023 by 34%, with six transactions above $1 billion in valuation.

KKR's exit, if completed at $10 billion, would rank as the firm's fourth-largest realization from a North American buyout since 2020.