Question about Apollo's distressed investments
Does anyone know if Apollo invest in distressed debt/distressed for control situations out of their credit fund or PE fund? I think they have like $60+bn in credit.
I know they've invested in portfolio company debt like Lyondell and Realogy, and that's partly how their last PE funds have recovered so well. So I'm assuming those were from the PE funds?
What about other investments in like EFH/TCEH senior secured debt?
Also, in general, are most PE firms mandated to make distressed for control investments if the opportunity arises?
I think Lyondell and Realogy were both from the private equity side. I remember Apollo made some capital calls to double down on these investments. I would imagine any other distressed for control investments would be done using private equity capital as well.
My guess is their investment in TCEH senior secured debt comes from the credit side since it's not really a loan to own situation. They'll own a good chunk of equity after the restructuring, but so will the other senior secured creditors like Oaktree and I forget who else. Also, EFH hasn't even filed yet so emergence is a long ways from now. The timing/returns profile for this just doesn't seem like a PE investment.
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