Apollo Management Goes Deeper Into Debt
Apollo Management has spent much of 2009 recasting itself as a debt investor, and pounded home the point yesterday in a nine-page investor letter (as first reported by the WSJ). Signed by firm founder Leon Black, the dispatch says that Apollo's three investment themes are: Leveraged senior loans, distressed debt and portfolio company debt (you know, from when Apollo was primarily a mega-buyout shop). Here's a brief overview of Apollo's recent activities in each, based on the letter: Leveraged Senior Loans Apollo "selected credits totaling $24 billion of face value from the balance sheets of distressed financial institutions and secured long-term (7-9 year), low-cost (LIBOR+100bp) financing facilities... The vast majority of the margin that was posted has been returned and the investments are marked at or above cost as of September 30."
