Apollo Took Loss on Asset-Backed Loan Deemed Safe

Summary

Apollo Global Management took a loss on a portion of a $170 million asset-backed financing for Amazon brand aggregator Perch that was written off to zero. Bloomberg senior reporter Silas Brown said the more important takeaway is that the loss is a rare blemish and warning shot for asset-backed finance and private credit, which had been seen as a safe, scalable area for insurers. The segment also discussed CVC's $1.2 billion deal for Marathon Asset Management, with mixed views on the valuation and Marathon's position of strength amid larger private capital managers scaling multi-product platforms.

• Apollo took a loss on asset-backed financing for Perch, written off to zero.
• Silas Brown says the loss is a warning shot for asset-backed finance and private credit.
• Asset-backed credit is normally structured to mitigate loss risk, making this loss notable.
• Insurers have been funneling balance sheets into asset-backed private credit.
• CVC's $1.2 billion deal for Marathon Asset Management drew mixed valuation views.
• Marathon was described as a beneficiary of larger private capital managers scaling multi-product platforms.