The Abu Dhabi Investment Authority (ADIA) made a cornerstone capital commitment to Apollo’s ATLAS SP Partners, a securitized credit organization and asset-backed finance franchise.
Including ADIA’s commitment, the size of which was not disclosed, ATLAS SP is expected to support roughly $15 billion of new warehouse financing commitments, in addition to the roughly $40 billion of commitments it currently has under management. With the ABF Franchise, ADIA’s investment is building on the more than $100 billion Apollo manages today in asset-backed instruments, a number it expects to grow significantly in quarters to come.
“Private capital continues to play a meaningful role in credit formation, and we believe asset-backed finance is the next big evolution of this market,” said John Zito, partner and deputy CIO of Credit at Apollo. “We are building an ecosystem that can capture these opportunities across a wide variety of formats including whole loans, warehousing, securitization and more. For issuers, this can support consistent access to credit at a competitive cost of capital from duration-matched, long-term investors across market cycles.”
Apollo described the asset-backed strategy effort as directly originating an increasing share of $20 trillion global asset-backed financing market. “As the global fixed-income market evolves, our strategy of scaled fixed income replacement is expanding into a broader array of private credit solutions,” said Apollo Co-President Jim Zelter. “ATLAS SP and our ABF strategies are leading part of this evolution, and we are excited to partner with ADIA to advance our global position.”
ADIA’s commitment to ATLAS SP will bolster its capacity to provide warehouse financing solutions, Apollo officials said.
Hamad Shahwan Al Dhaheri, executive director of the Private Equities Department at ADIA, said: “Asset-backed finance is a large and growing asset class, and our investments in ATLAS SP Partners and ABF provide the opportunity to support the growth of two leading platforms, led by strong management teams, alongside a proven partner in Apollo.”
