Apollo Said Near Deal to Acquire MidCap for $500 Million

Apollo Investment Corp. (AINV), a New York-based provider of business loans, is nearing an agreement to buy health-care lender MidCap Financial LLC for about $500 million, said people familiar with the matter.

A deal for Bethesda, Maryland-based MidCap may be announced as soon as next week, said the people, who asked not to be named because the process is private. No agreement has yet emerged and the talks may still fall through.

Fifth Third Bancorp (FITB) also had expressed interest in MidCap, one of the people said. The firm, which lends to drugmakers, medical device makers and other health-care related companies, was working with Bank of America Corp. (BAC) to find bids, people familiar with the matter said last month.

Representatives at MidCap, Apollo Investment, Cincinnati-based Fifth Third and Bank of America declined to comment.

MidCap began in 2008 with $500 million in investment commitments from Lee Equity Partners LLC, Genstar Capital LLC and Moelis & Co., according to a statement at the time.

Apollo Investment is managed by an affiliate of Apollo Global Management LLC (APO), the buyout firm run by Leon Black. It lends to health-care, finance, aviation and other types of companies with $50 million to $2 billion in annual sales, according to its annual report.

To contact the reporter on this story: Matthew Monks in New York at mmonks1@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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