Apollo originates record $40bn of private credit in Q1
Apollo Global Management originated a record $40bn (£32bn) of private credit in the first quarter of this year, helping its profits rise by 26 per cent.
The alternative asset management giant saw its adjusted net income increase to $1.06bn, boosted by higher management fees and the growth of its private credit business.
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Apollo reported that its direct origination portfolio returned 3.9 per cent in the first three months of the year, while it structured credit portfolio increased by 3.8 per cent.
Corporate credit returned 2.9 per cent and its hybrid value portfolio increased by four per cent.
Total assets under management increased by 12 per cent year-on-year to $671bn, which includes $501bn of credit assets.
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“Capital formation and origination activity in the quarter were robust, with inflows and debt origination volume each totaling $40bn,” said Marc Rowan, chief executive at Apollo.
“With visible momentum across the platform, we’re confident in our ability to deliver on our financial targets for the year.”
Apollo has been capitalising on the stratospheric growth of private markets, both in the institutional and wealth channels.
Last month, the firm’s co-president James Zelter said that financial markets are undergoing a “massive transition” as use of private credit options begins to outstrip bank financing.
