Apollo Global Management Inc. is in talks to inject $750 million to support the leveraged-finance business of Credit Suisse Group AG’s investment-banking spinoff First Boston, according to people with knowledge of the matter.
(Bloomberg) — Apollo Global Management Inc. is in talks to inject $750 million to support the leveraged-finance business of Credit Suisse Group AG’s investment-banking spinoff First Boston, according to people with knowledge of the matter.
The New York-based alternative asset manager’s commitment may be matched by the Zurich-based lender, giving the unit roughly $1.5 billion in capital, said the people, who requested anonymity as the information is private. That could be leveraged to create about $7.5 billion in lending capacity for Single B-rated borrowers, one of the people said.
Apollo’s discussions are parallel and separate to its talks about a possible investment in the First Boston unit. No agreement has been reached for either transaction and it’s possible that terms change or negotiations collapse.
Credit Suisse is undertaking an overhaul following years of scandals and management missteps. The new strategy includes the plan to spin off businesses including capital markets, advisory and leveraged finance into a “super boutique” under the Credit Suisse First Boston name, led by Michael Klein. The rainmaker told staff at a town hall last week that they will be shareholders in the venture, to be based in New York.
Credit Suisse and Apollo representatives declined to comment.
Any transaction would follow Apollo’s acquisition of a significant portion of Credit Suisse’s securitized-products group. The companies said earlier this month they’ve completed a “substantial first close” of the deal, enabling them to launch Atlas SP Partners, which is led by Chief Executive Officer Jay Kim.
–With assistance from Allison McNeely.
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