Apollo joint venture to target stressed and distressed debt in Italy

Reforms to bankruptcy law and banking are seen as major positives to enter the Italian market.

Apollo Global Management has formed a strategic partnership with an Italian investor to tap into corporate credit opportunities in the country.

Apollo’s funds will work with investor and adviser Apeiron Management to target investments of between €5 million and €50 million through both debt and equity. There will also be an opportunity to pursue larger transactions in certain cases.

Commenting on the launch, Robert Ruberton, head of illiquid opportunistic credit at Apollo, said: “We believe the current economic environment and legal reforms have created attractive opportunities for Apollo in the region.”

The partnership will take the form of a platform established by Apollo called Apollo Delos, and will provide finance to Italian corporates in several ways including through investing in impaired loans, claims and various credit instruments tied to Italian companies. It will focus on stressed and distressed opportunities, insolvency compositions and non-performing credit.

Apeiron will work with Apollo to implement the investment strategies for the platform and provide support for origination, due diligence, structuring, execution, and management of transactions.

The firms said they want to capitalise on Italy’s strong manufacturing base, banking reform and improved bankruptcy legislation.

Alessandro Fracanzani, CEO and founding partner of Apeiron, said: “The Italian market presents a wide array of value investment opportunities in the credit space, and we look forward to working alongside Apollo to unlock this potential.

“Investments in distressed and underperforming scenarios in Italy necessitate local knowledge and an adaptive approach, attributes that clearly define this partnership.”