Abu Dhabi Investment Authority Backs Apollo’s ABF Efforts

Posted on 06/07/2023

Thanks to the financial fall of Credit Suisse, Apollo Management (NYSE: APO) announced that its newly established Asset-Backed Finance (ABF) franchise and ATLAS SP Partners, L.P., two core components of the firm’s broad asset-backed ecosystem and strategy to directly originate have received cornerstone capital commitments from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Apollo believes the global asset-backed financing market is US$ 20 trillion, according to a press release. ADIA sees asset-backed finance as a key strategy and growing asset class. In February 2023, Apollo completed its substantial first close of which affiliates of Apollo purchased a significant portion of the Securitized Products Group from Credit Suisse. ATLAS SP Partners CEO Jay Kim, previously Managing Director and Head of Securitized Products at Credit Suisse, heads the organization.

ATLAS SP Partners is a securitized credit origination business majority owned by Apollo affiliates. ADIA’s commitment to ATLAS SP will bolster its capacity to provide warehouse financing solutions. Typically investment grade credit risk, warehouse financing provided by ATLAS SP and large money-center banks supports mortgage originators, commercial finance providers, and other specialty finance platforms helping companies and consumers to access credit. Inclusive of ADIA’s commitment, ATLAS SP is expected to be able to support approximately US$ 15 billion of new warehouse financing commitments, in addition to the approximately US$ 40 billion of commitments under management by ATLAS SP today.

Apollo’s newly established ABF franchise, part of the firm’s credit business, lends against a diverse array of asset types. The platform will extend Apollo’s track record in asset-backed finance through dedicated ABF strategies focused on private investment grade and sub-IG opportunities. ADIA’s commitment is a critical step forward for the ABF Franchise, building on the more than US$ 100 billion Apollo manages today in asset-backed instruments, a number it expects to grow significantly in quarters to come.

Paul, Weiss, Rifkind, Wharton & Garrison LLP represented Apollo in connection with the closing of the transaction.

Keywords: Apollo Management, Apollo Global Management.

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