Business Development Companies (BDCs) - middle-market lending
Strategic Profile
AINV is focused on investing in senior secured loans to middle market companies sourced by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, Inc. The Company greatly benefits from its affiliation with Apollo, a high-growth global alternative asset manager with approximately $513 billion of assets under management as of March 31, 2022, and being part of Apollo's platform provides AINV with significant scale and differentiated access to information.
Cyborg Score Rationale
Apollo Investment Corporation benefits from strong backing by Apollo Global Management with substantial AUM and a portfolio transitioning toward defensive positioning. However, limited recent data (most recent full-year report is FY2022) and exposure to middle-market lending risks in an uncertain macroeconomic environment temper the outlook.
Top Insights
As of fiscal year ending March 31, 2022, corporate lending assets represented 83% of the total portfolio with net leverage of 1.51x, reflecting a de-risking shift toward first lien secured loans
Company successfully reduced exposure to non-core and junior capital positions while increasing first lien floating rate loan exposure
Affiliated with Apollo Global Management, which provides scale, access to 660+ investment professionals, and deal-sourcing capabilities
Operates within a structured leverage range with senior secured revolving credit facility commitments of approximately $1.7-1.8 billion
Named Competitors
MidCap Financial — Co-manager and affiliate partner in Apollo Investment Corporation
Ares Management BDC — Alternative asset manager offering BDC services and middle-market lending
Blackstone BDC — Leading alternative asset manager with BDC lending operations
Recent Developments
(July 2021) Priced $125 million of 4.500% unsecured notes due July 2026
(Fiscal year ending March 31, 2022) Completed portfolio repositioning with 83% corporate lending exposure and maintained net leverage of 1.51x
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