Apollo to Launch Private Fund in Asset-Based Financing Buildout

(Bloomberg) — Apollo Global Management Inc. is launching its first-ever fund dedicated to asset-based financing, laying the groundwork for what the firm is telling investors could be the largest vehicle of its kind in the market.

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The new fund marks a move by one of the world’s largest alternative asset managers to expand its more-than-$100 billion platform for asset-based financing by tapping external investors directly, according to a person familiar with the matter who asked not to be named because the matter is private. The vehicle stands to climb to more than $5 billion in size, the person said.

The company is meeting with several investors, and initial seed investments have already started to be made — with the number and size of deals expected to ramp up in August, according to the person. Investors will be able to enter and exit the evergreen fund at will, the person said.

Eric Siegel, a former portfolio manager at Tilden Park Capital Management, joined Apollo this month as a managing director of the asset-based financing platform, according to a different person with knowledge of the matter. He previously worked as a managing director in structured products trading at Goldman Sachs Group Inc.

Representatives for Apollo and Tilden declined to comment. Siegel didn’t reply to a request for comment.

Apollo, which oversaw some $450 billion of credit assets as of late March, has been building out its asset-based origination business after acquiring Credit Suisse Group AG’s Atlas platform. Abu Dhabi Investment Authority has also committed capital toward the build-out of Apollo’s asset-based financing businesses.

A portion of Apollo’s asset-based financing business previously went through Athene Holding Ltd, an insurer that the asset manager merged with in early 2022. The firm had also used multi-strategy funds over the past decade for such lending.

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