ABF, once the safe, collateral-backed part of private credit, fails as collateral proves worthless

Apollo Global Management Inc. took a loss on a portion of a $170 million asset-backed financing for Amazon brand aggregator Perch that was written off to zero, a rare stumble for a strategy touted as one of private credit’s safest and most promising.

The loss represents a share of an up to $500 million commitment that Apollo and its insurance arm, Athene, made to credit facilities run by Victory Park Capital, a firm now owned by Janus Henderson Group Plc.

Other investors including BlackRock Inc. and Oaktree Capital Management have lost hundreds of millions of dollars in …

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https://news.bloomberglaw.com/banking-law/apollo-took-100-loss-on-asset-backed-loan-deemed-protected