Apollo Global Management APO is teaming up with JPMorgan Chase JPM, Goldman Sachs GS 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 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.
Image 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.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Citigroup Inc. (C) : Free Stock Analysis Report
Apollo Global Management Inc. (APO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
