Apollo’s ATLAS SP Secures Investment from MassMutual

120

In a significant strategic move, Apollo and MassMutual have announced a transformative partnership, with MassMutual becoming a minority equity owner in ATLAS SP Partners (ATLAS) and a key capital partner to the ATLAS platform. ATLAS, a prominent player in the warehouse finance and securitized products sector is majority-owned by Apollo funds.

As part of this multi-billion-dollar commitment, MassMutual has also agreed to invest in Apollo’s Asset-Backed Finance (ABF) franchise. These investments mark a significant collaboration, enabling MassMutual to access predominantly investment-grade, asset-backed credit originated by ATLAS SP and throughout the broader Apollo ecosystem, in conjunction with Apollo’s retirement services businesses.

Marc Rowan, CEO of Apollo, expressed his enthusiasm for the partnership, highlighting MassMutual’s recognition of the opportunity to generate excess spread in the private investment-grade market, particularly in asset-backed finance. Rowan emphasized the alignment of values between the two companies, citing MassMutual’s reputation as one of the country’s leading protection and retirement planning providers.

Eric Partlan, Chief Investment Officer of MassMutual, underscored the strategic significance of the transaction, emphasizing its ability to complement the capabilities of Barings, MassMutual’s wholly owned asset manager. Portland described the investment as a strategic move within MassMutual’s broad portfolio, aimed at delivering long-term value to policymakers and customers.

Since its launch in February 2023, ATLAS SP has demonstrated impressive growth, originating approximately $24 billion in assets to support its clients and the real economy. The partnership with MassMutual further solidifies ATLAS SP’s position in the market, with MassMutual joining the Abu Dhabi Investment Authority (ADIA) as a cornerstone investor in the business.

Jim Zelter, Co-President of Apollo, emphasized the generational opportunity presented by asset-backed finance, with ATLAS SP playing a pivotal role in Apollo’s ABF franchise. Zelter highlighted Apollo’s focus on providing solutions in the investment-grade market, leveraging its extensive origination ecosystem.

ATLAS SP forms a crucial component of Apollo’s broader ABF franchise, which originates credit backed by tangible assets such as auto, aviation, and equipment finance, as well as financial assets including secured cash flows from royalties and mortgages. With a belief in the substantial potential of the private ABF market, Apollo has positioned itself as a leader in this space over the past 15 years.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Apollo and its affiliates in these transactions, while Simpson Thacher & Bartlett LLP represented MassMutual, underscoring the complexity and significance of the partnership between these two industry giants.