Apollo Global Management is stepping up its lending to private equity buyout firms looking to raise cash to help them return money to investors, by making more than $4bn in so-called net asset value (NAV) loans, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that some of the transactions include multiple loans of more than $1bn each.
With traditional borrowing options drying up, PE firms and private credit firms are increasingly looking for alternative sources of finance, including NAV loans, which are secured against a pool of their portfolio companies.
Apollo is planning to originate the loans in part from S3, its sponsor and secondary solutions business, as it looks to establish itself as a fully fledged alternative asset manager. The firm has also been boosting its activity in direct lending and structured credit driven by the growth of insurance arm Athene.
