Apollo raises $300 million for new loan fund

Apollo has become the latest credit manager to launch a closed end fund targeting leveraged loans. It has announced that it raised $300 million in capital for the Apollo Senior Floating Rate Fund, which listed on the New York Stock Exchange yesterday. As well as senior loans, the fund can invest in CLOs, according to its prospectus, and it expects to be leveraged up to one-third of the asset value. The fund’s senior portfolio manager will be Joe Moroney, who joined Apollo from Aladdin Capital in 2008, along with Alex Wright, who recently joined from GSC Group.

There are currently around 20 outstanding closed end funds that invest predominantly in US leveraged loans. Other planned closed end loan funds in the pipeline include one from Symphony Asset Management.