Apollo to Raise Funds for Private Market Lending
Apollo Global Management Inc., one of the world’s largest alternative asset managers, is planning to raise about $2.5 billion to lend in private markets. The move is part of Apollo’s strategy to expand its credit business and capitalize on the growing demand for private debt.
Apollo’s Credit Business
Apollo has been investing in credit markets since its founding in 1990. The firm has grown its credit business significantly over the years, and it now has more than $150 billion in assets under management. Apollo’s credit business includes direct lending, distressed debt, structured finance, and other credit-related strategies.
Growing Demand for Private Debt
The demand for private debt has been growing in recent years, as investors seek out higher yields and more stable returns. Private debt is attractive to investors because it offers higher returns than traditional debt instruments, such as bonds and loans. Private debt also offers more flexibility than public debt, as it can be tailored to meet the specific needs of the borrower.
Apollo’s Fundraising Efforts
Apollo is planning to raise $2.5 billion to lend in private markets. The firm is targeting institutional investors, such as pension funds, endowments, and insurance companies. Apollo is also looking to raise funds from wealthy individuals and family offices.
The fundraising effort is expected to be completed by the end of the year. Once the funds are raised, Apollo will use them to invest in private debt instruments, such as leveraged loans, high-yield bonds, and structured finance products.
Benefits of Private Market Lending
Private market lending offers a number of benefits to both borrowers and lenders. For borrowers, private debt can provide access to capital that may not be available through traditional sources. Private debt can also be tailored to meet the specific needs of the borrower, such as providing more flexible repayment terms.
For lenders, private debt can provide higher returns than traditional debt instruments. Private debt can also be less risky than public debt, as it is not subject to the same level of market volatility.
Apollo’s Expansion Plans
Apollo’s fundraising efforts are part of the firm’s strategy to expand its credit business. The firm is looking to capitalize on the growing demand for private debt and to diversify its portfolio.
Apollo is also looking to expand its presence in other areas of the credit markets. The firm recently launched a new fund that will invest in distressed debt and special situations. The fund is expected to be launched later this year.
Conclusion
Apollo Global Management Inc. is planning to raise about $2.5 billion to lend in private markets. The move is part of Apollo’s strategy to expand its credit business and capitalize on the growing demand for private debt. Private debt offers a number of benefits to both borrowers and lenders, and Apollo is looking to capitalize on this trend. The firm is also looking to expand its presence in other areas of the credit markets, such as distressed debt and special situations.