Fixed Income
Apollo’s Fox Hedge Is Taking Financial Wizardry to a New Level
Private capital firms are going to remarkable lengths to squeeze out more returns for their regulated insurance companies.
Apollo Global Management in New York
Photographer: Jeenah Moon/BloombergAdvanced Credit Solutions is a tiny finance firm based in Luxembourg that was founded by a Belgian and works with insurers. Despite its outwardly bland appearance, the business it does is anything but.
The little-known outfit is the brains behind Fox Hedge, a roughly $5 billion fund created for Apollo Global Management Inc., according to people with knowledge of the situation. It’s a highly complicated investment vehicle that pushes the boundaries of just how creative the titans of private capital can be when putting regulated insurance capital to work.