Apollo weighs sale of MidCap Financial Investment Corp
Apollo Global Management is considering selling its $3 billion business development company, MidCap Financial Investment Corp, due to rising loan defaults and redemption pressure.
The company’s loan defaults jumped to 5.3% in the first quarter from 3.9% in December, contributing to a $61 million net loss.
Investors in Apollo’s private BDC requested redemptions of 11% of shares last quarter, part of a sector-wide withdrawal trend hitting private credit managers.
Apollo restructured a separate vehicle in January, transferring $9 billion of commercial property mortgages to its insurance arm Athene