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Friday, November 20, 
8:14 pm

Apollo raising $2B European distressed debt fund

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Leon_Black_2.jpgApollo Global Management is moving into distressed debt in a big way as it bets that banks will be willing to part with loans to under performing companies at deep discounts. The private equity firm has already received $2.3 billion for distressed investing in the U.S. from Calpers, but has plans to raise a further £1.1 billion ($2 billion) for a European-focused distressed fund.

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Also on Dealscape

Over the weekend, the Daily Telegraph reported that the new Apollo partnership plans to buy non-performing loans at large discounts from European banks, repackaging it and then selling it later on at a hefty profit. Other buyout shops with funds buying up distressed debt in Europe include a $1.35 billion Carlyle Group partnership and $1.35 billion Blackstone fund.

Apollo has been moving to expand aggressively ahead of an initial public offering expected later this year. The firm recently announced that it was forming a partnership with investment bank Lazard to make deals in Europe and is in the midst of raising its eighth private equity fund targeted at $15 billion. -- George White

See Daily Telegraph story
See Dealscape post on Apollo/Calpers
See story on Lazard/Apollo on TheDeal.com
See Dealscape post on Apollo's earnings






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