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Apollo helping Victory Park to offload Amazon aggregator Perch

Apollo Global Management is pitching in to find a buyer for Victory Park Capital’s Perch, one of the so-called Amazon aggregators it invested in after raising as much as $500m in debt from Apollo, as the PE major looks to avoid a write-down on its exposure, according to a report by Bloomberg.

Amazon aggregators like Perch, which was founded by former Wayfair Inc operations executive Chris Bell, focused on acquiring popular online brands, but have run into trouble after the pandemic-fuelled sales boom ran out steam.

The report cites unnamed sources with knowledge of the matter as revealing that for months, Victory Park has been seeking a buyer for Perch in a deal that would involve offloading about $400m in debt.

At the peak of the hype around Amazon aggregators, Perch, raised almost $1bn from Victory Park, SoftBank Group Corp and other investors.

Apollo and Victory Park have tried to sell Perch to another aggregator, Razor Group, according to Bloomberg’s sources, by leveraging Victory Park’s debt investment in the firm, but the deal was scuppered by PE firm L Catterton, which has an equity stake in Berlin-based Razor.

Negotiations are said to be ongoing though, and a deal, most likely in the form of a merger between the two companies, could yet be agreed.

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