Apollo Global Management has committed $585m in financing to flexible workspace operator The Executive Centre (TEC), marking Apollo’s largest hybrid debt-and-equity transaction in Asia to date, according to Private Equity Wire. The report said the financing was described in a statement as being primarily intended to refinance existing borrowings at TEC.
Hybrid debt-and-equity financing after a competitive process
The transaction followed a competitive process and combines debt and equity, according to Private Equity Wire. Private Equity Wire reported that Bloomberg described the commitment as Apollo’s largest hybrid debt-and-equity transaction in Asia to date.
The Executive Centre’s ownership and footprint
TEC was acquired in 2021 by a consortium led by KKR and Tiga Investments, according to Private Equity Wire. The company operates flexible workspace locations across 38 cities in 15 markets spanning Asia Pacific and the Middle East, the report said.
Competitive backdrop in Asia corporate lending
The TEC transaction comes as private credit managers compete with banks for a larger share of corporate lending across Asia, according to Private Equity Wire. Widely known context: “private credit” commonly refers to non-bank lending provided by asset managers and other alternative capital providers.
Apollo’s other cited regional commitment
Apollo has also recently committed $1.5bn to a fund managed by Singapore-based Keppel, which is targeting a portfolio of offshore energy assets, according to Private Equity Wire.
