Key Takeaways
- • Apollo closed Apollo Origination Partnership Fund II (AOP II) with approximately $4.8 billion of investable assets, according to a GlobeNewswire release dated October 15, 2024.
- • Total assets raised for Apollo's Large Cap Direct Lending business reached approximately $13.3 billion in just over 12 months, including the Fund II close and other product formats.
- • Apollo's total direct lending and performing credit AUM has doubled to $238 billion over the past four years.
- • AOP II targets senior corporate debt of issuers predominantly in the United States and Western Europe that generate more than $100 million of annual EBITDA.
- • Apollo's Credit business exceeds $500 billion in AUM, with inflows from institutional fundraising, Global Wealth, and Retirement Services.
Summary
Apollo Global Management (NYSE: APO) announced on October 15, 2024 that it has closed its second vintage large-cap direct lending vehicle, Apollo Origination Partnership Fund II ("AOP II" or "Fund II"), with approximately $4.8 billion of investable assets. The figure is inclusive of equity commitments and anticipated leverage, according to the firm's release.
The close brings total assets raised for Apollo's Large Cap Direct Lending business to approximately $13.3 billion in just over 12 months, counting Fund II and other product formats that provide access to the firm's direct lending franchise. Apollo said its total direct lending and performing credit AUM has doubled to $238 billion over the past four years.
AOP II is designed to capitalize on growing demand for corporate and sponsor-backed large-cap lending. The strategy aims to invest in senior corporate debt of issuers located predominantly in the United States and Western Europe that generate over $100 million of annual EBITDA.
Apollo Credit Partner Jim Vanek said the strategy offers investors a differentiated approach to corporate and sponsor direct lending, adding that the convergence of public and private credit markets is creating strong demand for scaled direct lending solutions led by a single counterparty able to offer price and execution certainty to borrowers. Deputy CIO of Credit John Zito said the firm's decades-long credit history and the reach of its Credit platform position it to lead in the market, and that platforms with scaled, diversified capital sources are well placed to meet the growing needs of large companies.
Apollo's Credit business has more than $500 billion of AUM, supported by diversified and stable inflows across institutional fundraising, Global Wealth, and Retirement Services. Paul, Weiss, Rifkind, Wharton & Garrison LLP represented Apollo in the closing of Fund II. Apollo reported approximately $696 billion of total AUM as of June 30, 2024.
The close brings total assets raised for Apollo's Large Cap Direct Lending business to approximately $13.3 billion in just over 12 months, counting Fund II and other product formats that provide access to the firm's direct lending franchise. Apollo said its total direct lending and performing credit AUM has doubled to $238 billion over the past four years.
AOP II is designed to capitalize on growing demand for corporate and sponsor-backed large-cap lending. The strategy aims to invest in senior corporate debt of issuers located predominantly in the United States and Western Europe that generate over $100 million of annual EBITDA.
Apollo Credit Partner Jim Vanek said the strategy offers investors a differentiated approach to corporate and sponsor direct lending, adding that the convergence of public and private credit markets is creating strong demand for scaled direct lending solutions led by a single counterparty able to offer price and execution certainty to borrowers. Deputy CIO of Credit John Zito said the firm's decades-long credit history and the reach of its Credit platform position it to lead in the market, and that platforms with scaled, diversified capital sources are well placed to meet the growing needs of large companies.
Apollo's Credit business has more than $500 billion of AUM, supported by diversified and stable inflows across institutional fundraising, Global Wealth, and Retirement Services. Paul, Weiss, Rifkind, Wharton & Garrison LLP represented Apollo in the closing of Fund II. Apollo reported approximately $696 billion of total AUM as of June 30, 2024.
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