Qatar’s QIA last month formed a US direct lending partnership with Credit Suisse Asset Management, while Abu Dhabi’s $232.2 billion wealth fund Mubadala partnered with Barings to launch a $3.5 billion European direct lending platform. In July, Mubadala also paired with Apollo to launch a $12 billion US direct lending platform.

John Zito, deputy chief investment officer of Apollo’s credit business, estimates that out of the roughly $3 trillion large-cap syndicated loan and bond markets, 5-10% may go private over the next three-to-five years. “If 10% goes private, that is a $300 billion market and only a handful of folks can do $1 billion-plus facilities.” Apollo’s $12 billion platform focuses on originating deals greater than $1 billion, which means it can capture opportunities that overlap between the syndicated loans and private credit markets. The two markets have historically been separated. Apollo did most of its middle market lending through MidCap Financial, while most of the loans above $500 million sat in its in-house credit business. Because of its integrated platform, Apollo’s syndication and origination efforts now sit in the same area of its business, a different approach to several competitors. Ares Management, for example, has its public and private businesses in separate arms, and they are led by different people.