The deal that has spurred Apollo’s plan to remake Wall Street

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FT editor Raula Khalaf selected his favorite stories in this weekly newsletter.

Author is a former investment banker and author of “Power Failure: The Rise and Fruit of a American icon”

The volatile financial markets, the United States’ always developed tariff policies, often create unique opportunities like those we face. Back to what happened in October 2022, the Credit Sweys shortly after starting a large business reconstruction and the credit-rating agencies announced that they were reducing the Swiss bank’s debt, adding to 166-year-old financial institutions.

One of the immediate steps that the bank took in response to bank confidence was to accelerate most of the sales of one of its crown gems, the so-called securities product group, a large resource-based NDING Business that made-or “source” and invested products like auto-loans.

The business was a favorite inside the credit swice and one of its profitable. But sometimes the market forces you to do things that you don’t want to do and the sale of this business was one of those times.

As usual, the opportunist Apollo Global Management, Alternative Resources Manager, Credit Sueis was just very happy to impose on the growing financial crisis. This is Apollo’s DNA. In short, J before the other, more high -controlled financial institutions can work, Apollo has cut an agreement with a credit swice to buy a New York -based business.

According to One Insider, Apollo Loan bought them for a slight discount at the Loan Portfolio. It names the Atlas SP business and sets up as a separate unit, the majority owner of Apollo and the Mass Mutual, Big Insurance Organization and Sovereign Resources Fund as Abu Dhabi Investment Authority investor.

Since the closure of the agreement in February 2021, the Atlas SP has become the basis for Apollo’s ambitious plan for remaking Wall Street through the market for private credit. Apollo President Jim Gelter told me in December, “When you really look back at the strategic transaction for this firm, it comes there,” because it told me in December, “Because it was really the first huge enthusiasm for a scale of that scale, which is a non-bank owned.” He said he joking about Apollo CEO Mark Rowan that they didn’t even know how to spell Atlas five years ago.

It is now central to the main strategy of the farm to increase the amount of Apollo to produce the amount of income-producing resources required to cover the responsibilities produced by Apollo’s full-owned anniversary business Athene. It spreads as a profit between the two.

Among the $ 785bn resources of Apollo under Management, some $ 641BN is personal credit, the balance is the personal equity. Apollo has long propagated that the types of deposits that are run by some banks and the loss of confidence in investors are low because its resources and responsibility duration is long -term and closely matched. The message has begun to come out. The market value of the company is $ 86 billion, over 250 percent in the last five years, although its stock was strictly hit by the recent widespread market turmoil. Despite the recent rally, it has still decreased 13 percent in 2025 so far.

Apollo earned about $ 220 billion assets in 2024 and within five years it has the ambition to promote it to 275BN. Atlas SP is the key to achieving that desire. This year it has earned more than $ 40 billion assets with a target of $ 50 billion. Atlas SP is one of the 16 Loan-source “platform” which is Apollo or the majority equity investment owner or has a special strategic importance. The Atlas SP has 300 clients, and each of these Orrows is the promoter of small loans, providing business tents across the American business.

In various ways, Apollo’s Origination businesses with Atlas in the center have helped to fill the zero of the old GE capital after being broken a decade ago and sold. It now provides all kinds of loans to create inventory and equipment, vehicles and fleet, mortgages, investment funds and digital infrastructure. Atlas Agreement, Apollo Vice-President John Jito says a Gentle A year ago, the investor conference, “perhaps the most innovative M&A transactions will be seen in the last five years”.

At the moment, the future is here, and it looks like it’s doing well. The question is: What is the calculation for private credit and what will happen if so, and what will happen? May 2 on Bloomberg InterviewOctary Capital co-chief executive officer Robert O’Lari said some limited partners of the private Credit O fund in anticipation of the downturn have already started selling their claims at a big discount of 50 cents of the dollar, and it may be worse, and when, when, real compulsory sales begin.