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Apollo Partners With Major Banks to Boost Private Credit Trading

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Key Takeaways

  • APO joins forces with JPM, GS and others to syndicate and trade investment-grade private credit.
  • This move positions APO to offer faster loan origination and tap individual investors market.
  • APO's strategy includes partnerships with C and State Street to broaden private credit access.

Apollo Global Management (APO - Free Report) is teaming up with JPMorgan Chase (JPM - Free Report) , Goldman Sachs (GS - Free Report) and three other banks to introduce greater liquidity into the rapidly expanding private credit market. This news was first reported by Bloomberg.

Details of APO Collaboration

This collaboration is intended to syndicate and trade investment-grade private debt actively, with banks acting as broker-dealers, either by directly acquiring Apollo’s loans or facilitating their sale to third parties. 

Through partnerships with major banks, Apollo aims to expand its capacity significantly to originate larger loans more swiftly. This positions APO to tap into the individual investor market, where the demand for liquidity and flexibility is typically higher than that of institutional investors. 

This initiative is a key element of Apollo’s broader strategy to expand its credit trading footprint. Enhanced liquidity and accessibility are expected to attract both institutional and individual capital, fueling continued growth in the private credit market.

APO’s Prior Efforts to Expand Private Credit Market Access

In 2024, Apollo inked a deal with Citigroup (C - Free Report) for a subsidiary of Citigroup and certain affiliates of Apollo to establish a revolutionary $25-billion private credit, direct lending program. The program will initially focus on North America, potentially expanding to additional geographies. Both companies expect the program to finance approximately $25 billion of debt opportunities over the next several years, including corporate and financial sponsor transactions. 

In the same year, Apollo and its affiliates announced their partnership with State Street's asset management business, State Street Global Advisors, to enhance investors' accessibility to private market opportunities.

Our Take on APO Efforts to Expand Private Credit

Apollo’s collaboration with major banks not only strengthens its position in private credit market but also reflects its broader ambition to expand its assets under management and loan origination capacity. As private markets increasingly compete with traditional banking, Apollo’s proactive approach positions it as a key player in shaping the future of private credit trading.

APO’s Price Performance & Zacks Rank

Year to date, shares of Apollo have declined 20.4% compared with the industry’s 10.6% fall.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

Currently, APO carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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