Apollo targets $2bn for credit secondaries fund
Apollo Global Management is looking to raise $2bn (£1.57bn) for its second credit secondaries fund.
The investment giant is expected to start formally making the fund by the end of this quarter, according to people with knowledge of the matter cited by Bloomberg.
Apollo reportedly declined to comment.
The firm launched its credit secondaries platform in April 2021 with $1bn of assets under management.
Read more: Apollo to launch lending platform for retail investors
Credit secondaries involves buying stakes in debt funds at a discount from investors who sell out early.
Apollo has been tapping into the private credit boom, having announced last September that it was targeting a fundraise of around $2.5bn for a new private credit vehicle that will look to provide loans to large corporate borrowers. This followed the launch of the Apollo Origination Partnership Fund I, which closed last year with a remit to invest in large corporate borrowers in North America and Western Europe.
In a virtual event held by the company in November, Chris Edson, global co-head of the financial institutions group at Apollo, predicted that the private credit market could be worth up to $40trn.
Edson said that Apollo does not believe that all private credit is attractive, and reiterated the company’s philosophy to seek out investment grade opportunities with an attractive risk/reward balance.
“We’re looking for outsized deployment,” he said.
Read more: What is the true size of the private credit market?
“We’re focused on really stable investments into businesses that have really long track records of performance. Our returns are primarily driven by the net income generation of this business, not by changes in franchise value or other things like that.
“We like asset-backed finance because it has a long track record of performance.”