Apollo Seeks $20 Billion to Pounce on Credit Market Tumult

(Bloomberg) -- Apollo Global Management Inc., the alternative investment firm with the largest private credit unit, plans to raise $20 billion across several new funds as distressed opportunities soar.

The firm is seeking to gather the money over the next year for dislocations in credit markets as well as private debt, according to people with knowledge of the matter, who asked not to be identified because the information isn't public. Apollo also is planning to expand its strategy of buying hybrid securities, as it did with the likes of Expedia Group Inc. in recent weeks.

The fundraising haul could be among the biggest on Wall Street. Oaktree Capital Group is targeting $15 billion for distressed investments and Blackstone Group Inc. is seeking $7 billion for a new fund for its GSO unit. Apollo has already been writing large checks to companies that have been hurt by the Covid-19 crisis and stepping in where banks have been reticent to lend.

It has also sought to be quick to deploy capital. As of April 2, the firm led by Leon Black had put more than $10 billion to work in a matter of weeks as credit markets plunged during the crisis, the people said. In a similar vein, KKR & Co. spent more than $2 billion in March to capitalize on the downturn as funds were forced to sell.

A spokeswoman for New York-based Apollo declined to comment.

In March, Apollo bought part of a $2 billion loan to help United Airlines Holdings Inc. boost its liquidity. It also was part of an investor group to put money toward a $1 billion debt offering by Airbnb Inc. amid pandemic struggles.

The deal with Expedia has been one of the largest since the crisis has hit, with Apollo agreeing alongside Silver Lake to invest $1.2 billion in preferred stock.