Private equity firm Apollo Global Management is planning to raise a second publicly traded fund to invest in leveraged loans.
Apollo Credit Fund, a closed-end investment management company, filed a prospectus with the Securities and Exchange Commission Wednesday for an initial public offering. The prospectus did not indicate how much money the fund intends to raise or which firms would underwrite the offering.
The fund will invest the majority of proceeds from the IPO in the senior secured debt of subinvestment-grade companies. The prospectus does not indicate whether the fund will acquire an existing portfolio of loans or acquire loans individually. However, the fund anticipates being able to invest substantially all of the proceeds in securities that meet its investment objectives within approximately three months of completing the offering.
Apollo Credit Management, an affiliate of Apollo Global Management, will serve as the fund’s investment adviser.
Apollo Global Management’s other closed-end publicly traded fund, Apollo Investment Corp., was formed in 1990 and went public in January 2007. As of March 31, its portfolio was valued at $3.1