Apollo Takes On Banks With Its First Large-Cap, Direct-Loan Fund

Apollo Global Management Inc. raised its first dedicated fund for large-cap direct loans as the alternative-asset manager looks to fill the gap left by banks pulling back from financing buyouts.

Apollo Origination Partners, the first fund in a series that will make direct loans to companies with at least $100 million in earnings, raised $2.35 billion, according to the company. New York-based Apollo now has $10 billion of assets under management for large-cap lending and $50 billion for direct lending.

“The number of firms who can do $1 billion deals is shrinking,” John Zito, Apollo’s deputy chief investment officer ...