Apollo lining up over $4bn in NAV loans

Apollo Global Management is stepping up its lending to private equity buyout firms looking to raise cash to help them return money to investors, by making more than $4bn in so-called net asset value (NAV) loans, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that some of the transactions include multiple loans of more than $1bn each.

With traditional borrowing options drying up, PE firms and private credit firms are increasingly looking for alternative sources of finance, including NAV loans, which are secured against a pool of their portfolio companies.

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Apollo is planning to originate the loans in part from S3, its sponsor and secondary solutions business, as it looks to establish itself as a fully fledged alternative asset manager. The firm has also been boosting its activity in direct lending and structured credit driven by the growth of insurance arm Athene.

 Source: Private Equity Wire 

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