The 50/50 JV will be based on Apollo’s global credit offerings and Belstar’s investment and collaboration knowledge with corporates and organisations in Korea.
The JV, name of which has not been disclosed, will offer asset-based capital solutions as well as corporate lending and acquisition funding to large corporates, mid-sized enterprises and sponsors operating in the country.
It is also expected to provide both private lending solutions and existing traditional funding options in a bid to help reduce liquidity gap confronted by the borrowers.
In addition, the JV represents a strategic expansion plan for Apollo’s credit investment franchise in the Asia Pacific region. It is also set to back Apollo’s new Asia Pacific Credit Strategy.
Apollo anticipates to use its funds as well as internal and related insurance balance sheets to facilitate specific capital for the JV’s yield and duration investment sectors.
Apollo partner and Asia Pacific head Matt Michelini said: “We have been exploring the market opportunity in Korea with a heightened degree of interest for several years, and are delighted to partner with Belstar to address the market need for alternative forms of liquidity and credit in Korea.
“We are optimistic this joint venture will serve as a starting point for Apollo’s long-term presence in Korea.”
Apollo has over $10bn of assets under management invested across Asia Pacific. The company has a workforce of 60 investment executives in the region.
Last year, Apollo named Partner Matt Michelini to lead its Asia Pacific unit and partner Anthony Hermann to lead Asia Pacific Credit division.
The company is said to manage nearly $376bn of yield assets under management and has around $515bn of total assets under management until 30 June 2022 across the globe.
Last month, Apollo formed a strategic alliance with Sumitomo Mitsui Trust (SuMi TRUST) and its subsidiary Sumitomo Mitsui Trust Bank (SuMi TRUST Bank) to invest in a registered suite of diversified alternative assets.
As part of the tie-up, SuMi TRUST seeks to invest parallelly with Athene, a retirement services provider, and Apollo.