Apollo Sets $750 Million Target for Credit Fund III: Buyouts

Apollo Global Management LP has begun marketing its latest credit fund, with a $750 million target, according to a regulatory filing, sister magazine Buyouts reported. The New York buyout mega-firm reported no sales yet for the vehicle, Apollo Credit Opportunity Fund III LP, according to a filing dated Dec. 31.

No placement agent was indicated for the new credit fund. A spokeswoman for Apollo declined comment, citing restrictions on speaking about fundraising.

Apollo says on its Web site that its senior credit funds mainly invest in senior secured debt instruments, including bank loans and bonds, through privately negotiated transactions; the funds also invest opportunistically in a variety of other public and private debt instruments such as debtor in position financings, rescue or “bridge” financings, and other debt instruments.

The predecessor Fund II closed at $500 million in 2008, according to the Thomson One private equity database. Known limited partners include the Teacher Retirement System of Texas and the University of Texas Investment Management Company.

When Apollo bought the credit investor Stone Tower Capital LLC last April, the transaction nearly doubled Apollo’s credit business and made capital markets the firm’s largest business segment by assets, with $39 billion under management.

Steve Bills is a senior editor at Buyouts Magazine. Any opinions expressed here are entirely his own. Follow him on Twitter @Steve_Bills. Follow Buyouts tweets @Buyouts. For information on how to subscribe, contact Greg Winterton at greg.winterton@thomsonreuters.com.

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