Akin Advised Apollo in Expanding ATLAS SP Partners and ABF Franchise with ADIA's Cornerstone Commitments

Akin Advised Apollo in Expanding ATLAS SP Partners and ABF Franchise with ADIA's Cornerstone Commitments

Global law firm Akin provided tax advisory services to Apollo in the establishment of its Asset-Backed Finance (ABF) Franchise and ATLAS SP Partners. These initiatives form integral parts of Apollo's comprehensive asset-backed strategy, aimed at directly originating a larger portion of the global asset-backed financing market valued at $20 trillion. Apollo has secured cornerstone capital commitments for the strategy from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

ADIA's commitment to ATLAS SP Partners, a securitised credit origination business majority owned by Apollo affiliates, will enhance its ability to offer warehouse financing solutions. Traditionally, warehouse financing has been supported by investment-grade credit, large money-centre banks, and commercial finance providers, facilitating access to credit for mortgage originators, specialty finance platforms, and companies in need.

With the backing of ADIA, ATLAS SP Partners is anticipated to expand its capacity by supporting approximately $15 billion in new warehouse financing commitments. This is in addition to the approximately $40 billion in commitments currently managed by ATLAS SP, with ongoing efforts to raise additional capital.

“As the global fixed income market evolves, our strategy of scaled fixed income replacement is expanding into a broader array of private credit solutions. ATLAS SP and our ABF strategies are a leading part of this evolution, and we are excited to partner with ADIA to advance our global position,” Apollo Co-President Jim Zelter said.

Hamad Shahwan AlDhaheri, Executive Director of the Private Equities Department at ADIA, said: “Asset-backed finance is a large and growing asset class, and our investments in ATLAS SP Partners and ABF provide the opportunity to support the growth of two leading platforms, led by strong management teams, alongside a proven partner in Apollo.”

Apollo's recently established Asset-Backed Finance (ABF) franchise, operating within the Firm's Credit business, aims to provide lending solutions across a wide range of asset classes. This platform expands on Apollo's extensive experience in asset-backed finance by introducing dedicated ABF strategies that target both private investment grade and sub-investment grade opportunities. ADIA's commitment plays a vital role in advancing the ABF Franchise, further strengthening Apollo's position in managing asset-backed instruments. With over $100 billion currently under management in this area, Apollo anticipates significant growth in the coming quarters.

Partner Alex Specht led the Akin team that provided advisory services to Apollo. The team also included partner Patrick Fenn, counsels Julie Geng and Ekaterina Lyashenko, senior practice attorney Leah Karlov, and associates Jeff Whalen and Tim Higgins.