UBS sells $8bn of Credit Suisse loans to Apollo
UBS has sold $8bn (£6.3bn) of senior secured loans to alternative asset manager Apollo, as part of its efforts to sell off non-core assets from its takeover of Credit Suisse last year.
The investment bank entered into an agreement with former rival Credit Suisse to acquire its securitised products unit in 2022, with Apollo contracted to manage that division.
UBS said that today’s deal is the final step in its carve-out of Credit Suisse’s securitised products business, which Apollo rebranded Atlas.
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It stands to make a $300m net gain from the transaction, while Apollo will continue to grow Atlas as a standalone origination platform, UBS said.
“We’re pleased with this mutual agreement with Apollo,” said Sergio P. Ermotti, chief executive of UBS Group.
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“As we execute on our integration plans, this is another example of our relentless focus on working with clients and counterparties to free up capital from non-core activities and reducing costs and complexity.”
Marc Rowan, chief executive of Apollo, said: “We are pleased to finalize the Atlas transition in partnership with UBS, in an economically neutral manner for our firm. This caps off a quarter marked by record origination and capital raising for Atlas, where we have generated $24bn originations since inception and have secured capital to support over $40bn of client assets.”
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