Global investment manager Apollo is to expand into the secondaries markets via a new $1 billion-backed platform anchored by investments from the company’s re/insurance clients
Apollo Credit Secondaries will look to capitalise on the continued growth of private credit by addressing related liquidity or portfolio needs from underlying investors.
Apollo’s nearly $330 billion Credit business will house the platform, something that’s expected to yield advantages in regards to sourcing and underwriting a portfolio of credit secondaries.
It’s worth noting that, following a merger deal with Athene earlier this year, Apollo has since become one of the largest life and annuities focused reinsurance capital providers in the world.
With this new venture, Apollo expects to generate attractive risk-adjusted returns with meaningful downside protection by continuing to maintain a disciplined investment approach.
Furthermore, the company’s efforts in credit secondaries are to be augmented with additional team members over the coming months, building out its secondaries capabilities in partnership with its wider client base.
“Apollo’s Credit business is known for being a flexible solutions provider and this new platform extends that value proposition to the growing market of credit secondaries, helping investors to address liquidity needs and optimize their portfolios,” said Apollo Co-President and Chief Investment Officer of Credit James Zelter.
“We believe the scale of our platform, flexible capital base and strength in underwriting will allow us to source and execute on opportunities unavailable to many other industry participants.”
