“We are patient, we are a solutions provider and we are extremely flexible in terms of where we can go in both yield and opportunity.”
John Zito
Deputy CIO of Credit
Credit
- Our Approach
- Asset Classes
- Related Insights
Literature
- Our Approach
- Asset Classes
- Related Insights
Quick Links
Our Approach
Our Credit business, Apollo’s largest asset management strategy by AUM, spans the private and public corporate credit and asset-backed finance markets. We serve as a financing partner of choice for large corporates, sponsor-backed businesses, specialty lending platforms and more, helping companies to access flexible solutions at competitive costs of capital to fuel their growth. Borrowers frequently turn to Apollo for bespoke solutions, price certainty and speed of execution.
Across our platform we focus on strong credit fundamentals, company and sector knowledge and rigorous underwriting. We have built significant capabilities in private fixed income, including investment-grade solutions to serve the needs of retirement services and other ratings-sensitive institutions.
Key Stats
$598B
AUM
420+
Investment Professionals
4,000+
Issuer Relationships
As of Steptember 30, 2024
One of the world’s largest alternative credit investors
Our integrated global platform and origination infrastructure helps us to manage more than $450 billion of credit assets
Financing stronger businesses
Our flexible and innovative solutions help to finance stronger businesses in all market environments
Investment and retirement solutions
We seek to generate high-quality credit and excess risk-adjusted returns to meet clients’ investment and retirement income objectives
Asset Classes
Identifying opportunities within the public and private corporate credit markets
$382B AUM
- Direct Lending
- Investment Grade and High Yield Bonds
- Broadly Syndicated Loans
- Preferred Equity
Originating and financing asset-backed capital solutions
$216B AUM
- Securitized Products
- Warehouse Financing
- Whole Loan & Assets
- Structured Platform Equity
- Portfolio Finance
- Other Private & Bilateral Asset-Backed Lending
Investment Strategies
Multi-Asset Credit
- Multi-sector credit across public and private markets
- Targets strong credit fundamentals
- Expansive opportunity set with limited overlap to traditional fixed income portfolios
- Semi-liquid credit
Direct Lending
- Large corporate direct origination
- First lien and unitranche
- Strong credit documentation
- Seeks illiquidity premium in private markets
Asset-Backed
- Secured by hard assets and financial assets
- Private and public diversified asset-backed financing
- Whole loans, whole business securitization
- Platform equity
- Seeks downside protection through structuring and collateral
Opportunistic
- Dislocation and event-driven opportunities
- Opportunistic hybrid solutions
- Active across public and private markets
- Seeks outsized alpha generation, low correlation to traditional asset classes over a credit cycle
Origination Platforms
We’ve built an ecosystem of origination platforms focused on asset-backed and specialty lending. These businesses span aviation, equipment and trade finance, warehouse facilities and more. Today there are nearly 4,000 professionals working across 16 platform businesses, which originate tens of billions in assets every year for Apollo clients and third parties.
We believe our direct origination strategy helps to deliver excess risk-adjusted returns at scale on a recurring basis.
Case Studies
In December 2022, Apollo structured and anchored an asset-backed securitization for Concord, a global leader in music publishing, recorded music and theatrical rights licensing. The $1.8 billion transaction was the largest-ever ABS of music rights at time of issuance and illustrates how Apollo’s ecosystem can support and finance stronger businesses through cost-effective, asset-backed financing.
Amid bankruptcy at the height of COVID, Hertz found in Apollo a financing partner capable of executing a quick-turn, multi-billion-dollar series of transactions that enabled the company to continue operations and meet customers’ needs.
Eliant is providing flexible capital solutions for an ever-changing world by helping companies optimize their supply chains.
Related Insights
Apollo believes Investment Grade Private has the potential to generate attractive risk-adjusted returns but has been overlooked because it doesn’t fit neatly into the current asset allocation framework.
Market participants often ask why large corporate borrowers would choose a private solution for financing rather than the public markets, especially in the current environment. In this paper, we answer that question and explore the lasting power of private credit, the landscape of the debt markets, potential opportunities, and pitfalls to avoid.
Demand booms for low-liquidity, higher-return credit assets, Marc Rowan says
