Apollo Poised to Loan $4B to Struggling Buyout Firms

The video discusses the rise of NAV lending due to difficulties in fundraising and banks scaling back. Private equity funds are seeking creative borrowing solutions, with Apollo and 17 Capital leading the market. The market is expected to grow significantly, despite risks and high costs. Current market size is around $100 billion, with potential to reach $700 billion by the decade's end.

What is one reason for the increase in NAV lending?

• Interest rates have decreased significantly.

• Private equity funds need creative borrowing solutions.

• Fundraising has become easier.

• Traditional banks are offering more loans.

Which company is mentioned as having a significant pipeline of loans for private equity firms?

• 17 Capital

• HPS

• Apollo

• Goldman Sachs

What strategy is HPS using to enhance its NAV financing capabilities?

• Reducing interest rates

• Hiring from Goldman Sachs

• Partnering with Apollo

• Merging with 17 Capital

What is a potential risk associated with NAV lending?

• Low demand for loans

• High lend-to-value ratios

• Fixed interest rates

• Lack of legal ability to borrow

By the end of the decade, how large could the NAV lending market grow according to forecasts?

• 500 billion

• 1 trillion

• 200 billion

• 700 billion