Apollo Global Management and BNP Paribas are close to finalising a partnership to originate private credit loans for European corporate and private equity borrowers, Bloomberg reports.

The arrangement would mirror Apollo’s $25bn private credit agreement with Citigroup in North America, extending the model into Europe. The size of the European programme has not been disclosed.

BNP Paribas is among the most active European arrangers of investment-grade bonds and leveraged loans. Apollo operates one of the largest credit platforms among private capital managers globally.

The prospective tie-up comes as banks expand balance sheet commitments to compete in the $1.8tn private credit market.

Despite increased scrutiny of the asset class, institutional demand remains strong. The partnership would combine BNP’s origination capabilities with Apollo’s scale in private capital, reinforcing the structural convergence between banks and alternative asset managers.

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