Apollo Global Management and Ares Management have arranged $4bn in financing for Leaf Home, a Gridiron Capital portfolio company, to fund its acquisition of Erie Home and refinance existing debt, according to a report by Bloomberg.

Ares led a $1.9bn preferred equity investment alongside co-investors and Gridiron, while Apollo provided a $2bn debt package. The hybrid structure reflects growing demand for private credit solutions that combine debt and equity features, enabling private equity sponsors to extend hold periods while returning cash to investors.

As part of the deal, Erie CEO Jenilee Common will take over as chief executive of the combined company, which now operates across 48 U.S. states and Canada. Leaf Home provides a range of services including re-roofing, gutter systems, water solutions, and garage flooring.

Gridiron Capital has backed Leaf Home since 2016. The company had previously explored raising $2bn via the syndicated loan market with Goldman Sachs and Bank of America but ultimately opted for private credit providers, amid heightened competition between banks and direct lenders.

The transaction underscores the growing role of private credit in large-scale financing, with Apollo and Ares continuing to position themselves as leading players in the market.

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com.

Can`t stop reading? Read more.