Apollo Global Management has shifted its complex lending unit out of its buyout division, in a move to double down on private credit.
The reorganisation by the $908bn (£678.8bn) US alternative asset manager, which began earlier this year, was confirmed at a town hall meeting this week, according to a report in the Financial Times.
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Matt Nord, formerly co-head of private equity at Apollo, is now leading the separated unit, known as hybrid capital.
He will remain co-head of Apollo’s private equity funds alongside David Sambur, but will take a reduced role in the day-to-day running of the division.
Reed Rayman has been appointed deputy head of hybrid investing, according to the report, working alongside Chris Lahoud.
The move underscores Apollo’s pivot away from traditional private equity, one of its core strategies, with $185bn in assets under management and more than 300 portfolio companies, toward the rapidly expanding private credit market.
Apollo’s private credit arm has amassed to around $723bn in assets under management, now significantly larger than its private equity business, and maintains relationships with more than 4,000 issuers.
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The shift comes after Marc Rowan, Apollo’s chief executive, signalled that private equity is no longer the primary growth engine for the firm.
It also comes as private credit dominated Apollo’s third-quarter results, fuelling sharp rises in assets under management, income and management fees.
Apollo’s AUM climbed 24 per cent year-over-year to in the three months to 30 September, driven by $82bn of inflows during the period and $219bn over the past 12 months.
