New York-based investment manager
Apollo Global Management, LLC
) wholly controlled subsidiary recently completed the acquisition
of Bethesda based MidCap Financial LLC. The terms and conditions
of the deal, however, were not divulged.
MidCap Financial specializes in the middle market healthcare
lending business and has approximately $2 billion assets under
management. With over 150 lending relationships, this healthcare
oriented financial firm is expected to help Apollo Global
Management expand in the thriving U.S. healthcare market.
Apollo Global Management intends to capitalize on MidCap
Financial's healthy pipeline of loans, stable credit history and
field expertise to boost profitability in the long run.
On the other hand, though MidCap Financial will continue with its
lending activities, this divesture will help increase its access
to capital and product offerings. Therefore, the partnership will
enable it to provide enhanced services for its existing client
Merrill Lynch, which is a part of
Bank of America Corp.
), and SunTrust Robinson Humphrey, an affiliate of
SunTrust Banks, Inc.
), along with Moelis & Company acted as advisors to MidCap
Financial for the transaction.
Apollo Global Management third-quarter 2013 results were
impressive, with economic net income (ENI) of $1.34 per share
that included positive earnings surprise of 78.7%.
Moreover, the company has raised funds worth $14.0 billion in the
preceding four quarters. Given its earnings power and ability to
raise capital, the private equity firm is favorably positioned to
engage in similar acquisition activities going forward.
Apollo Global Management currently carries a Zacks Rank #3
(Hold). A better placed investment manager is
Artisan Partners Asset Management Inc.
), which has a Zacks Rank #1 (Strong Buy).
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