Apollo Global Management formed Apollo Strategic Origination Partners. The new origination platform is expected to provide approximately $12 billion in financings over the next three years, targeting transactions of approximately $1 billion to help meet growing corporate demand for scaled direct origination solutions. Apollo Strategic Origination Partners is anchored by Mubadala Investment Company and certain permanent capital vehicles managed by Apollo.

“Apollo Strategic Origination Partners is designed to leverage our significant capabilities in origination and alternative credit to help strategic capital partners such as Mubadala invest with scale in high-quality businesses,” James Zelter, co-president and chief investment officer of credit at Apollo, said. “The platform builds on our decades of experience providing capital solutions to large issuers. We believe there is meaningful demand for financing solutions that sit between our leading middle-market direct lending platform, MidCap Financial, and the broadly syndicated loan market and expect this platform will be able to effectively capitalize on the burgeoning opportunity set.”

“Mubadala’s investment philosophy is centered on world-class partnerships like this,” Waleed Al Mokarrab Al Muhairi, deputy group CEO and CEO of alternative investments and infrastructure for Mubadala, said. “Apollo is one of the most sophisticated and innovative alternative investors, and this strategic commitment should allow us to use our combined expertise to make compelling, sizable investments in great companies and a positive economic impact globally. We chose Apollo for their breadth of experience, historically strong performance and low default rate within their credit business.”

Apollo Strategic Origination Partners is built on Apollo’s track record in direct origination, its borrower relationships and its view of the global credit markets. Apollo’s alternative credit business is active across 28 distinct asset classes and has more than 235 investment professionals.

“We believe Apollo and our longstanding strategic partners, who are aligned in investment philosophy and horizon, are well positioned to meet the substantial corporate and sponsor demand for large direct lending solutions,” John Zito, deputy chief investment officer of credit for Apollo, said.

Apollo Strategic Origination Partners will originate direct lending solutions on a global basis, targeting scaled investments in large, established corporations. Apollo intends to continue to build out its large corporate direct origination capabilities in partnership with its global institutional investor base.

In addition to the formation of Apollo Strategic Origination Partners, funds managed by affiliates of Apollo Global Management upsized and extended Apollo’s investment partnership with Apeiron Management, which is focused on special situations and corporate credit investment opportunities in Italy.

Through this strategic partnership, which launched in February 2018, Apollo funds to date have deployed nearly €300 million ($338.44 million) in Italy across investments in corporate debt, receivables, special situations, insolvency compositions, and other stressed and distressed assets.

Apeiron will continue to work with Apollo, providing support in the origination, due diligence, structuring, execution and management of transactions under the Apollo Delos investment platform. The platform will be upsized by €100 million ($112.81 million) with immediate effect and Apollo funds also will have the opportunity to invest in larger Apeiron transactions as they are presented. As part of the renewed commitment, Apeiron will continue to target credit opportunities in Italy, with a focus on corporate borrowers and special situations across the entire capital structure.

“Building off of our successful relationship with Apollo in which we have deployed a significant amount of capital in attractive investment situations in Italy, Apeiron is delighted by this upsized and extended commitment,” Alessandro Fracanzani, founding partner and CEO of Apeiron Management, said. “Through the combined efforts of our highly skilled teams, we will continue to invest across asset classes in Italy, often in complicated situations requiring speed and certainty of execution.”

“We are pleased to extend our strategic partnership with Apeiron to target additional investments in the Italian market,” Robert Ruberton, senior partner and co-head of hybrid value at Apollo Global Management, said. “Alessandro and his team have been trusted partners and continue to find, analyze and execute downside protected, uncorrelated investment opportunities which can generate attractive returns for our investors. We look forward to continuing our relationship.”