Apollo Global Management and its entities, clients and funds managed by its affiliates committed to invest up to $500 million in senior secured credit facilities originated by Victory Park Capital, a global investment firm with a track record in asset-backed credit origination.
The new lending relationship between Apollo and Victory Park Capital will focus on asset-backed lending to companies that aggregate third-party sellers on Amazon and other e-commerce sites. With this additional capital commitment from Apollo, Victory Park Capital expects to accelerate its investments in this space. Victory Park Capital will maintain its focus on income generation and capital preservation through downside protected investments in businesses building consumer goods companies.
“Our new relationship with VPC allows Apollo and our clients, including Athene, to make meaningful commitments to growth-oriented ABL activity, extending our platform’s access from early-stage structured credits up through mid-market and large-cap lending,” Bret Leas, senior partner and global head of structured corporate credit and ABS at Apollo, said. “Powerful secular trends are creating a new wave of e-commerce CPG companies that require institutional, structured capital solutions to scale, and we believe the team at VPC is well positioned to step in and help meet this need.”
“We believe this strategic relationship further validates the attractiveness of our approach to asset-backed lending to emerging businesses in the new economy,” Jeff Schneider, partner and COO at Victory Park Capital, said. “We look forward to originating capital efficient investments for Apollo’s clients and to expanding our presence in this industry vertical as well as others in our asset-backed opportunistic credit strategy.”
“We set out to be a market leader in providing credit to companies shifting to digital from traditional business models and are very excited about working with Apollo to further our penetration of this growing asset class,” Richard Levy, CEO and founding partner at Victory Park Capital, said.
The financing commitment marks Apollo’s entrance into growth lending and complements the firm’s coverage of credit origination, including its large cap and middle-market lending platforms, as well as credit strategies that span capital markets, real estate, fund and G&P finance solutions and other forms of partnership capital.