Apollo Global Management on Friday announced it will acquire alternative credit manager Stone Tower Capital, with about $17 billion in assets under management.
Terms were not disclosed. Stone Tower Capital manages assets for institutional, high-net-worth and family office clients.
The acquisition will make Apollo's capital markets its largest business segment in terms of assets under management, according to a joint news release from Apollo and Stone Tower. Once the deal closes in the first quarter, Apollo's capital markets business will have $39 billion in AUM; 47.5% of its total $82 billion assets under management.
Stone Tower manages separate accounts, credit opportunity funds, structured credit funds and 12 collateralized loan obligations.
About $5 billion of Stone Tower's structured credit portfolio consists of advisory contracts to close out structured investment vehicles, asset-backed security collateralized debt obligations and other short-term funds with an estimated remaining life of 12 to 18 months, the news release stated.
Charles Zehren, Apollo spokesman, said the company wouldn't comment beyond the news release. Stone Tower executives likewise declined to comment, according to spokesman Steve Bruce.