Apollo Global Management is accelerating its transformation from a traditional PE firm into one of the world’s largest private credit providers, using its insurance-backed capital base to compete directly with major investment banks for large-scale corporate financing mandates, according to a report by Bloomberg.
The alternative asset manager originated a record $309bn of loans in 2025 and has continued to expand its role in financing investment-grade borrowers, with executives targeting another strong year as demand for capital to fund artificial intelligence infrastructure and energy projects continues to grow.
The firm’s evolution has been underpinned by its ownership of insurer Athene, whose annuity business provides Apollo with a substantial source of permanent capital that can be deployed into private credit investments without the funding constraints faced by traditional banks.
That model has enabled Apollo to participate in increasingly complex financings, including a recently announced $35bn private credit package supporting AI-related investments by Broadcom and Anthropic, one of the largest private credit transactions completed to date.
Apollo executives say the firm’s ability to underwrite transactions of that size stems from its integrated insurance platform and flexible financing capabilities.
Rather than simply providing large loans, Apollo has increasingly focused on bespoke financing structures that allow corporate borrowers to raise capital while limiting the impact on their balance sheets and preserving investment-grade credit ratings.
The strategy was first demonstrated in 2022 through an $11.2bn transaction with Intel, in which Apollo acquired a 49% interest in a joint venture controlling the chipmaker’s semiconductor manufacturing facility in Ireland. The structure enabled Intel to treat the capital raised as equity rather than conventional debt, avoiding pressure on its credit rating.
Since then, Apollo has completed dozens of similarly structured financings worth more than $100bn, including transactions involving companies such as Anheuser-Busch InBev, Air France-KLM and BP. Bloomberg also reported the firm is in advanced discussions to provide nearly $3bn of financing to the New York Yankees.
The firm’s latest financing for Broadcom and AI developer Anthropic was arranged through its Atlas SP platform and included participation from other institutional investors, including Blackstone. The transaction was structured to keep the debt off Broadcom’s balance sheet while retaining the company’s guarantee.
Apollo believes the opportunity for alternative lenders will continue to expand as corporations seek increasingly flexible financing solutions. The firm estimates that as much as $100 trillion of capital could be required over coming decades to finance AI infrastructure, data centres, electricity networks and other digital infrastructure projects.
Chief executive Marc Rowan has overseen much of Apollo’s strategic shift since taking over in 2021, building on the firm’s full acquisition of Athene and broadening its focus beyond traditional buyouts into origination, structured credit and insurance.
Today, Apollo manages more than $1tn in assets, with spread-related earnings generated through its insurance operations accounting for the majority of profits, reducing its dependence on cyclical private equity realisations.
Alongside its lending expansion, Apollo has built out its capital markets and trading capabilities. The firm has established a private credit trading business, expanded secondary distribution of originated loans and developed partnerships with a number of global banks, including Citigroup and BNP Paribas, to source and syndicate financing opportunities.
The firm’s strategy increasingly mirrors that of a full-service credit institution, allowing it to originate loans, retain assets on its balance sheet, distribute portions to third-party investors and generate fee income throughout the financing process.
Its growing presence has also intensified competition between private credit managers and investment banks, particularly in investment-grade lending. While banks remain significant partners on many transactions, Apollo’s ability to provide large commitments quickly and structure highly customised financings has positioned it as an increasingly formidable rival in corporate lending.
The firm’s pipeline of structured financing opportunities reportedly exceeds $100bn, reflecting continued demand from large corporate borrowers seeking alternatives to conventional bank financing as private credit becomes an increasingly important source of capital for investment-grade companies.
