MassMutual made an investment to become a minority equity owner in ATLAS SP Partners and a capital partner to the ATLAS platform, which is the. warehouse finance and securitized products business majority owned by funds of Apollo. As part of the multi-billion-dollar commitment, MassMutual also agreed to invest in Apollo’s asset-backed finance franchise.
These investments will allow MassMutual to access predominately investment-grade, asset-backed credit originated by ATLAS SP and across the broader Apollo ecosystem alongside Apollo’s retirement services businesses. The commitments will also bolster ATLAS SP’s capacity to provide warehousing and other investment grade asset-backed solutions to the more than 200 financing clients of ATLAS SP.
“We are delighted to partner with MassMutual, a like-minded financial services company that recognizes the opportunity to generate excess spread in the vast private investment grade market, including asset-backed finance,” Marc Rowan, CEO of Apollo, said. “As one of our country’s most respected protection and retirement planning providers, this transaction creates an opportunity for MassMutual to generate additional earnings to benefit policyowners and their families.”
“This transaction is a unique market opportunity that enables MassMutual to access a scaled origination ecosystem and complements the capabilities of our wholly owned asset manager, Barings,” Eric Partlan, chief investment officer of MassMutual, said. “Importantly, it represents a strategic investment within our broad portfolio that helps us deliver on our long-term commitments to our policyowners and customers.”
Since its launch in February 2023, ATLAS SP has originated approximately $24 billion in assets to support its clients and the real economy. In addition to MassMutual, a wholly-owned subsidiary of the Abu Dhabi Investment Authority also made a cornerstone commitment to the ATLAS SP business in June 2023.
“We believe that there is a generational opportunity to originate excess return per unit of risk for our investors in asset-backed finance,” Jim Zelter, co-president of Apollo, said. “ATLAS SP is a key driver of our asset-backed finance franchise, and MassMutual’s commitment to the business reaffirms our focus of being a solutions provider in this massive, primarily investment grade market.”
ATLAS SP is part of Apollo’s broader ABF franchise, which originates credit backed by tangible assets, such as auto, aviation and equipment finance, as well as financial assets, including secured cash flows from royalties and mortgages.
Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to Apollo and its affiliated entities in the transaction with MassMutual, while Simpson Thacher & Bartlett was legal counsel MassMutual.
