Apollo starts European Credit Company with €10bn lending capacity

Apollo launched European Credit Company on Nov. 2 with more than €10 billion of lending capacity, a platform aimed exclusively at European performing credit. Apollo funds and affiliates led the capital, with Abu Dhabi Investment Council, Athora, Norinchukin Bank, Standard Chartered and Aranda Principal Strategies alongside.

For fund selectors weighing European performing-credit mandates, the more than €10 billion platform is a benchmark for a single regional mandate. The capital is anchored by Apollo's funds and affiliates and the five named institutions. The diligence question is how much of the book comes through European financial-institution partnerships rather than Apollo's own originators, because that determines whose underwriting standards carry the risk.

ECC will finance large-cap and mid-market deals, working with companies, sponsors and real asset owners including infrastructure and real estate, according to the release. It will originate loans itself, source assets through partnerships with European financial institutions, and have access to Apollo's wider European credit business.

Giacomo Petrobelli, who has spent his whole career in European financial services, is chief executive and Christian Meissner is chairman.

Apollo president Jim Zelter said Europe's financing needs are acute in energy transition and transmission, defense, and digital and traditional infrastructure.

Apollo's credit holdings are also changing: Ares Capital's $2.6 billion agreement to buy MFIC from Apollo, as Private Wealth Daily previously reported, was announced Oct. 27.

ECC starts with offices in Frankfurt, Jersey, London, Luxembourg City and Milan. Apollo said it plans to expand into additional markets in the coming quarters.