Apollo’s Bet to Take on Banks Hit Snags Before Atlas CEO’s Exit

The deal had all the hallmarks of Wall Street’s inevitable power shift: Apollo Global Management Inc., king of the rising non-bank lenders, seizing on weakness at Credit Suisse Group AG to snatch up one of the Swiss firm’s most lucrative businesses.

But Atlas SP Partners — the structured finance business that’s key to Apollo Chief Executive Officer Marc Rowan’s plan to become a lending machine — has struggled under its new owner since last year’s acquisition, according to interviews with almost a dozen people with knowledge of the unit. Cultures have clashed, business has slowed and a raft ...