US investment firm Apollo has more than doubled its investment in turnaround specialist Alteri Investors to set up a second investment vehicle focused on the EU retail sector.

The new fund, called Alteri Investors II, will enable Alteri to target retailers with sales of over £100m.

Alteri also has an agreement with Apollo to co-invest in deals with retailers with sales of up to £3bn.

The uplift in investment will also enable Alteri to expand into Spanish and Italian markets, as well as its current focus on European markets including the UK and Germany.

Alteri, which was founded in 2014, said its new investment vehicle will be focused on “targeting a broad range of opportunities from performing businesses facing structural or stakeholder issues, to companies which require fundamental financial and operational transformation”.

The firm has previously invested in distressed retailers including Brantano and Austin Reed.

Founder and chief executive Gavin George said: “We are extremely excited about the launch of our second investment vehicle. We believe that Alteri’s unique combination of financial firepower and retail expertise can help management teams unlock the potential in their businesses. With the European retail market going through a truly transformational period we believe the time is right to launch our second venture. With continued backing from Apollo Funds, we look forward to an even more successful future.”

Apollo partner Rob Ruberton added: “We are delighted with Alteri’s performance to date, which has exceeded our expectations and delivered over twofold returns on capital. Doubling our capital commitment underlines our confidence in Gavin and the Alteri team’s ability to source and execute profitable, downside-protected investments in the retail sector.”