Feb. 26 (Bloomberg) -- Leon Black’s Apollo Global Management LLC raised a $280 millon closed-end credit fund.
The Apollo Tactical Income Fund will invest at least 80 percent of it assets in loans, bonds, distressed debt, mezzanine securities and structured products, including collateralized debt obligations, according to a filing today with the Securities and Exchange Commission.
Apollo, which had assets under management of $113 billion as of Dec. 31, previously raised a closed-end fund in 2011, according to a statement. There was $3.9 billion of net inflows into loan mutual funds in January, according to data from Morningstar Inc.
Morgan Stanley and Citigroup Inc. led a group of underwriters for the fund, according to the prospectus. Closed-end funds have a fixed number of shares.
Leveraged loans and high-yield bonds are rated below BBB-by Standard & Poor’s and less than Baa3 at Moody’s Investors Service. CDOs pool high-yield, high-risk bonds and slice them into securities of varying risk and return.
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