SCHEDULE 13G/A: Apollo Management Entities Disclose Over 54% Beneficial Ownership in Rackspace Technology

Multiple Apollo Management entities have filed an amended Schedule 13G, revealing a collective beneficial ownership of 54.6% of Rackspace Technology, Inc.'s common stock as of March 31, 2025.

Summary

• Apollo Management Holdings GP, LLC, along with several affiliated entities including Apollo Management, L.P., Apollo Management GP, LLC, and Apollo Management Holdings, L.P., collectively reported beneficial ownership of 129,609,000 shares of Rackspace Technology, Inc. common stock.
• This aggregate ownership represents 54.6% of the total outstanding common stock of Rackspace Technology, Inc.
• The filing indicates that AP Inception Co-Invest ML Borrower, L.P. and its related entities beneficially own 69,609,000 shares, accounting for 29.3% of the class.
• AP Inception ML Borrower, L.P. and its associated entities beneficially own 60,000,000 shares, representing 25.3% of the class.
• All reported shares are held with shared voting and shared dispositive power, with no sole voting or dispositive power attributed to any single reporting person.
• The percentages are calculated based on 237,388,710 shares of Common Stock outstanding as of April 22, 2025, as disclosed in Rackspace Technology's definitive proxy statement filed on April 30, 2025.
• Messrs. Scott Kleinman, James Zelter, and Marc Rowan, who are managers and executive officers of Management Holdings GP, disclaim beneficial ownership of these shares.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and does not contain information that would inherently indicate positive or negative sentiment regarding the company's performance or outlook. It simply reports a significant ownership stake.

Future Outlook

NA

Industry Context

This filing indicates a significant, controlling stake held by Apollo Management entities in Rackspace Technology, a company operating in the cloud computing and managed services industry. Such a large institutional ownership percentage is common for companies that have undergone private equity buyouts or significant private investment, suggesting a continued strong influence of Apollo over Rackspace's strategic direction and operations. This level of ownership can impact market liquidity and the company's strategic flexibility.

Stakeholder Impact

• Shareholders: The significant beneficial ownership by Apollo Management entities indicates strong institutional control, which could influence future strategic decisions, capital allocation, and potential take-private scenarios or other corporate actions. It also suggests a concentrated ownership structure.

Key Dates

Keywords

Rackspace Technology, Apollo Management, Beneficial Ownership, Schedule 13G, Common Stock, Institutional Ownership, SEC Filing, Investment Management, Shareholding