Apollo Global Management, Inc. (APO) (together with its consolidated subsidiaries) announced the formation of Apollo Strategic Origination Partners. The new origination platform is expected to provide approximately $12 billion in financings over the next three years, targeting transactions of approximately $1 billion to help meet growing corporate demand for scaled direct origination solutions. The partnership is anchored by Mubadala Investment Company (Mubadala) and certain permanent capital vehicles managed by Apollo.
Apollo’s James Zelter, Co-President and Chief Investment Officer of Credit, said: “Apollo Strategic Origination Partners is designed to leverage our significant capabilities in origination and alternative credit to help strategic capital partners such as Mubadala invest with scale in high-quality businesses. The platform builds on our decades of experience providing capital solutions to large issuers. We believe there is meaningful demand for financing solutions that sit between our leading middle-market direct lending platform, MidCap Financial, and the broadly syndicated loan market and expect this platform will be able to effectively capitalize on the burgeoning opportunity set.”
Mubadala Deputy Group CEO and CEO of Alternative Investments & Infrastructure, Waleed Al Mokarrab Al Muhairi, said: “Mubadala’s investment philosophy is centered on world-class partnerships like this. Apollo is one of the most sophisticated and innovative alternative investors, and this strategic commitment should allow us to use our combined expertise to make compelling, sizable investments in great companies and a positive economic impact globally. We chose Apollo for their breadth of experience, historically strong performance and low default rate within their credit business.”
Apollo Strategic Origination Partners is built on the firm’s track record in direct origination, extensive borrower relationships and expansive view of the global credit markets. Apollo operates one of the world’s largest alternative credit businesses, which is active across 28 distinct asset classes and has more than 235 investment professionals.
Apollo’s John Zito, Deputy Chief Investment Officer of Credit, added: “We believe Apollo and our longstanding strategic partners, who are aligned in investment philosophy and horizon, are well positioned to meet the substantial corporate and sponsor demand for large direct lending solutions.”
Apollo Strategic Origination Partners will originate direct lending solutions on a global basis, targeting scaled investments in large, established corporations. Apollo intends to continue to build out its large corporate direct origination capabilities in partnership with its global institutional investor base.