Daily News: April 9, 2012

Apollo Invests in New Madison Capital Funding Senior Loan Vehicle


Apollo Investment Corporation (AINV) and Madison Capital Funding LLC announced the successful closing of a transaction whereby Apollo Investment has become the anchor equity investor in a loan vehicle managed by an affiliate of Madison Capital.

Madison Capital is a middle-market loan originator in the United States, and an affiliate of New York Life Investments. This new vehicle has purchased from Madison Capital an existing pool of senior secured loans to middle-market companies in the United States with approximately $250 million of combined face value. These loans were originated by Madison Capital over the past year. The new vehicle will have revolving secured financing provided by Wells Fargo Bank and Madison Capital.

In addition, Apollo Global Management, LLC and Madison Capital are looking to build on this transaction to develop additional opportunities in the middle-market lending arena on behalf of our respective clients.

“We are honored to have been selected by Apollo to combine our consistent approaches in accessing the middle market leveraged lending space,” said Trevor Clark, CEO and senior managing director at Madison Capital. “Apollo is among the most reputable and successful investment management firms in the world. Madison Capital remains firmly committed to the middle market private equity community, and this newly formed relationship will serve to enhance our market leading capabilities by enabling us to commit larger positions in the credit facilities that we lead or co-lead.”

Marc Rowan, senior managing director at Apollo Global Management, said, “We are very pleased that we are working with Madison Capital, which is a highly respected and leading middle-market loan originator with an outstanding track record. We look forward to identifying other opportunities with Madison Capital and believe our relationship will bolster our access to middle market loans on behalf of our clients.”

Apollo is a global alternative investment manager.