Citigroup, Apollo Partner For $25B Private Credit Program, Expanding Corporate Lending Access
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 26 2024
0mins
Should l Buy APO?
Source: Benzinga
Citigroup and Apollo Partnership: Citigroup has partnered with Apollo Global Management to launch a $25 billion private credit and direct lending program, initially focused on North America, aimed at enhancing access to private lending for corporate clients.
Strategic Goals and Participation: The collaboration combines Citi's banking expertise with Apollo's capital resources, expecting to finance significant debt opportunities while involving Mubadala Investment Company and Apollo’s subsidiary Athene as strategic partners.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy APO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on APO
Wall Street analysts forecast APO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APO is 162.77 USD with a low forecast of 136.00 USD and a high forecast of 186.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 126.080
Low
136.00
Averages
162.77
High
186.00
Current: 126.080
Low
136.00
Averages
162.77
High
186.00
About APO
Apollo Global Management, Inc. is a global alternative asset manager and a retirement services provider. It operates through three segments: Asset Management, Retirement Services and Principal Investing. The Asset Management segment focuses on three investing strategies: yield, hybrid, and equity. These strategies reflect the range of investment capabilities across its platform based on relative risk and return. The Retirement Services business is conducted by Athene Holding Ltd (Athene), a financial services company that specializes in issuing, reinsuring, and acquiring retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. Athene product lines include annuities and funding agreements. The Principal Investing segment includes realized performance fee income, realized investment income from its balance sheet investments, and certain allocable expenses related to corporate functions supporting the entire company.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apollo Global Management to Announce Q4 Earnings on February 9th
- Earnings Announcement: Apollo Global Management (APO) is set to release its Q4 2023 earnings report on February 9th before market open, with consensus EPS estimated at $2.04, reflecting an 8.1% year-over-year decline, and revenue expected at $1.2 billion, indicating the company's resilience amid market fluctuations.
- Historical Performance Review: Over the past two years, APO has exceeded EPS and revenue estimates 63% of the time, demonstrating reliability in financial performance and bolstering investor confidence.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen four upward revisions and nine downward adjustments, while revenue estimates have experienced four upward revisions and one downward, reflecting a cautious market outlook on the company's future performance.
- Market Environment Impact: Despite easing credit fears, Apollo Global's stock price faces limited upside potential, indicating a cautious market sentiment regarding its future growth prospects.
See More
Schroders and Apollo Form Strategic Partnership for Innovative Investment Solutions
- Strategic Partnership Highlights: Schroders and Apollo have announced a strategic partnership aimed at co-developing next-generation wealth and retirement investment solutions, combining Schroders' active management expertise in public markets with Apollo's private market capabilities, which is expected to significantly enhance client choice and investment outcomes.
- Product Innovation Plan: The firms will co-create new investment products that blend public and private market fixed income exposures, aiming to provide enhanced income solutions for UK wealth clients, improving excess returns per unit of risk, with the first product expected to launch later this year.
- Market Demand Response: This partnership reflects the growing global demand for hybrid investment solutions, with successful market testing indicating potential client interest pointing to a multi-billion dollar annual opportunity, further solidifying Schroders' leadership position in the UK wealth market.
- Asset Management Strength: Schroders manages over $1 trillion in assets with a strong background in public equities and fixed income, while Apollo oversees approximately $908 billion in assets, and their collaboration aims to provide clients with more reliable income solutions to meet increasing retirement needs.
See More
Schroders and Apollo Form Strategic Partnership for Innovative Investment Solutions
- Strategic Partnership Highlights: Schroders and Apollo have announced a strategic partnership aimed at co-developing innovative wealth and retirement investment solutions, with ambitions to achieve multi-billion-dollar annual flows, significantly enhancing client choice and investment outcomes.
- Product Innovation Plans: The firms will jointly launch new investment products that blend public and private market fixed income exposures, aiming to provide better income solutions for UK wealth clients and enhance excess returns per unit of risk, with the first product expected to launch later this year.
- Market Demand Response: This partnership reflects the growing global demand for hybrid investment solutions, with successful market testing indicating potential flows from existing clients that could yield multi-billion-dollar annual opportunities, addressing increasing savings and retirement needs.
- Combined Leadership Strengths: Schroders, managing over $1 trillion in assets, and Apollo, focusing on private investments, will leverage their complementary capabilities to meet the urgent societal need for reliable income solutions, driving future business growth.
See More
Private Credit Markets Face AI Disruption Risks
- Increased Pressure on Software Sector: The introduction of new AI tools by Anthropic has triggered a sell-off in software data provider shares, intensifying uncertainty in the private credit market, particularly regarding lending risks to software companies.
- Decline in Asset Management Stocks: Ares Management fell over 12%, Blue Owl Capital dropped more than 8%, and KKR and TPG saw declines of nearly 10% and 7%, respectively, reflecting investor concerns about AI's potential impact on cash flows and default risks.
- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
- Liquidity Issues Intensified: Although strains in private credit predate AI concerns, Jeffrey C. Hooke noted that existing liquidity and loan extension issues have been exacerbated by recent developments, adding new challenges to an already pressured sector.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
Apollo Global Management to Announce Q4 Earnings on February 9th
- Earnings Announcement: Apollo Global Management (APO) is set to release its Q4 2023 earnings report on February 9th before market open, with consensus EPS estimated at $2.04, reflecting an 8.1% year-over-year decline, and revenue expected at $1.2 billion, indicating the company's resilience amid market fluctuations.
- Historical Performance Review: Over the past two years, APO has exceeded EPS and revenue estimates 63% of the time, demonstrating reliability in financial performance and bolstering investor confidence.
- Expectation Adjustment Dynamics: In the last three months, EPS estimates have seen four upward revisions and nine downward adjustments, while revenue estimates have experienced four upward revisions and one downward, reflecting a cautious market outlook on the company's future performance.
- Market Environment Impact: Despite easing credit fears, Apollo Global's stock price faces limited upside potential, indicating a cautious market sentiment regarding its future growth prospects.
See More
Schroders and Apollo Form Strategic Partnership for Innovative Investment Solutions
- Strategic Partnership Highlights: Schroders and Apollo have announced a strategic partnership aimed at co-developing next-generation wealth and retirement investment solutions, combining Schroders' active management expertise in public markets with Apollo's private market capabilities, which is expected to significantly enhance client choice and investment outcomes.
- Product Innovation Plan: The firms will co-create new investment products that blend public and private market fixed income exposures, aiming to provide enhanced income solutions for UK wealth clients, improving excess returns per unit of risk, with the first product expected to launch later this year.
- Market Demand Response: This partnership reflects the growing global demand for hybrid investment solutions, with successful market testing indicating potential client interest pointing to a multi-billion dollar annual opportunity, further solidifying Schroders' leadership position in the UK wealth market.
- Asset Management Strength: Schroders manages over $1 trillion in assets with a strong background in public equities and fixed income, while Apollo oversees approximately $908 billion in assets, and their collaboration aims to provide clients with more reliable income solutions to meet increasing retirement needs.
See More
Schroders and Apollo Form Strategic Partnership for Innovative Investment Solutions
- Strategic Partnership Highlights: Schroders and Apollo have announced a strategic partnership aimed at co-developing innovative wealth and retirement investment solutions, with ambitions to achieve multi-billion-dollar annual flows, significantly enhancing client choice and investment outcomes.
- Product Innovation Plans: The firms will jointly launch new investment products that blend public and private market fixed income exposures, aiming to provide better income solutions for UK wealth clients and enhance excess returns per unit of risk, with the first product expected to launch later this year.
- Market Demand Response: This partnership reflects the growing global demand for hybrid investment solutions, with successful market testing indicating potential flows from existing clients that could yield multi-billion-dollar annual opportunities, addressing increasing savings and retirement needs.
- Combined Leadership Strengths: Schroders, managing over $1 trillion in assets, and Apollo, focusing on private investments, will leverage their complementary capabilities to meet the urgent societal need for reliable income solutions, driving future business growth.
See More
Private Credit Markets Face AI Disruption Risks
- Increased Pressure on Software Sector: The introduction of new AI tools by Anthropic has triggered a sell-off in software data provider shares, intensifying uncertainty in the private credit market, particularly regarding lending risks to software companies.
- Decline in Asset Management Stocks: Ares Management fell over 12%, Blue Owl Capital dropped more than 8%, and KKR and TPG saw declines of nearly 10% and 7%, respectively, reflecting investor concerns about AI's potential impact on cash flows and default risks.
- Rising Default Risks: UBS Group has warned that in an aggressive disruption scenario, default rates in U.S. private credit could rise to 13%, significantly higher than the projected stress for leveraged loans and high-yield bonds, estimated at 8% and 4%, respectively.
- Liquidity Issues Intensified: Although strains in private credit predate AI concerns, Jeffrey C. Hooke noted that existing liquidity and loan extension issues have been exacerbated by recent developments, adding new challenges to an already pressured sector.
See More
Key Earnings Reports and Economic Outlook This Week
- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
See More
Key Focus Areas This Week: Jobs, Consumer Prices, Coca-Cola, CVS, Ford, McDonald's, and More
- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
