Apollo Global Management has moved its rapidly expanding complex lending business out of its private equity buyout division, underlining the firm’s strategic pivot toward private credit, according to a report by the Financial Times.
The newly established unit, called Hybrid Capital, will be led by Matt Nord, formerly Co-Head of Private Equity at Apollo, with Reed Rayman and Chris Lahoud joining as Deputy and Veteran Heads of Hybrid Investing, respectively.
The move reflects CEO Marc Rowan’s view that traditional buyouts are no longer the firm’s growth engine. Instead, Apollo is focusing on lending to businesses involved in AI, energy infrastructure, and other sectors requiring bespoke financings that conventional banks cannot provide.
Hybrid Capital crafts complex debt structures, often alongside minority equity stakes, and has generated annualised returns of nearly 20% since early 2024, compared with under 8% for Apollo’s traditional buyouts. Recent deals include financing Soho House’s acquisition and the carve-out of a large unit from waste management group GFL Environmental, as well as partnerships with companies such as Keurig Dr Pepper and venture firm 8VC.
Apollo continues to maintain a $127bn private equity business, headed solely by David Sambur, and is in the process of raising a $25bn flagship buyout fund. The restructure allows Apollo’s traditional PE teams to focus on core buyouts while the hybrid lending unit pursues higher-growth credit opportunities.
