Apollo Global Management Inc has secured a $5bn commitment from BNP Paribas SA to boost its private credit lending operations, marking a significant step in the firm’s effort to expand in areas traditionally dominated by banks.
The French bank is pledging the funds for investment-grade, asset-backed deals originated by Apollo, as well as the Atlas SP unit Apollo acquired from Credit Suisse. BNP’s initial $5bn facility is expected to grow over time.
The reports quotes Jim Zelter, Apollo’s co-president, as saying that: “This is one of the largest-ever, long-term private credit financings.”
The companies also plan to partner on future securitisations.
Atlas SP is a critical component of Apollo CEO Marc Rowan’s vision to create a credit powerhouse rivalling Wall Street banks. Rowan aims to generate $200bn to $250bn in annual loan volume through Apollo’s 16 origination platforms, which include mortgages, aircraft loans, and other private credit investments. Apollo packages private credit deals for sale to Athene, its annuities arm, and other insurance companies.
Atlas, which originated in the 1980s as Credit Suisse’s securitised-products unit, was one of the investment bank’s most profitable divisions, known for its complex and lucrative mortgage-backed securities deals. After Credit Suisse’s acquisition by UBS in 2023, Atlas relaunched under Apollo’s ownership with $40bn in assets under management. The unit provides financing to businesses and mortgage lenders, with plans to package assets into securities for sale to investors.
Atlas has secured additional financial backing, including a June 2023 investment from Abu Dhabi Investment Authority and a minority stake from Massachusetts Mutual Life Insurance Co.
