Apollo’s Financial Origami Is Smart — And Scary
The private capital manager has engineered a fascinating duration-matching trade for its insurance unit.
Apollo’s capital-relieving deal for its insurance unit is a clever piece of financial origami.
Photographer: Quentin Tyberghien/AFP/Getty Images
There’s a new fox sniffing around the private credit henhouse. Last year, Apollo Global Management Inc. engineered an innovative trade for its insurance arm Athene Holding Ltd., with the help of an obscure Luxembourg-based firm. It’s fascinating and troubling in equal measure.
The deal, named Fox Hedge LP, has repackaged $5 billion of loans and other debts that were already owned by Apollo’s funds and, through clever financial origami, turned them into bonds mainly for Athene to own, Bloomberg News reported this week.