Apollo to launch lending platform for retail investors
Apollo Global Management is planning to tap into the retail market with a new lending platform.
The investment giant is setting up a company that will connect investors with asset-backed loans, with a minimum investment threshold of just $2,500 (£1,955).
The Apollo Asset Backed Credit Company will fund and structure debt securities backed by different types of loans to individuals and businesses, according to documents filed with the US Securities and Exchange Commission this week, cited by Bloomberg.
Read more: Private debt market to grow to $2.8trn as number of funds hits record high
The assets backing the debt will include personal and auto loans, royalties, residential and commercial mortgages, aircraft loans and net-asset-value loans.
The new platform is structured as an operating company rather than an investment fund, which may allow it to take in more money from individual retirement accounts, Bloomberg said.
A number of City heavyweights, including Blackstone and BlackRock, have recently launched private debt funds targeting high-net-worth and sophisticated investors, in order to attract new sources of capital.
The funds have had mixed results so far, with regulatory and tax issues in the European market creating challenges when attracting investors.
Read more: Investors favour private credit over other alternatives