Apollo Lending Arm Teams Up With Impact Firm Lafayette Square

Apollo Global Management Inc.’s middle-market lending arm is teaming up with social-impact-driven investment firm Lafayette Square Holding Co. to make loans designed to help communities.

The firms could make $100 million to $200 million in joint loans in the next six months, said Howard Widra, senior partner at Apollo, in an interview. In their first joint deal, Lafayette Square and Apollo’s MidCap Financial are providing a credit facility to finance an employee-led buyout of North Carolina recycling firm Zero Waste Recycling.

Investors are pouring money into private credit firms in search of higher-yielding assets as interest rates remain ...