Apollo Global Management sought legal counsel from Simpson Thacher & Bartlett in its recent venture—a private credit fund featuring significant contribution from Abu Dhabi’s Mubadala Investment Co.
The Wall Street legal firm’s involvement with the $790 million dollar fund project was revealed in a recent filing with the Securities and Exchange Commission. Information about Simpson Thacher’s response to requests for comments remains unavailable.
The fund titled “Middle Market Apollo Institutional Private Lending” is set to direct the affiliated investment—a business development company from Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co., amongst others. The unique structure of the fund offers investors a no fee for the first year following a reduced fee in the subsequent year.
In a shift of trends, Big Law firms have been leaning towards alternative lending investments, which have been on the rise as lending costs still hover at high positions. Predictions from the London-based Prequin Ltd. reveal that private credit assets hold the potential to skyrocket up to $2.2 trillion by 2027.
The Middle East, specifically the United Arab Emirates and Saudi Arabia, has seen an influx of law firms, including major U.S. players. Last year, The Middle East & Africa generated $74.7 billion in deal volume with $21.1 billion coming from the UAE alone. Saudi Arabia is also drawing lawyers with its ambitious infrastructure projects and abundant funding.
The advising team from Simpson Thacher on this fund featured partners David Blass, former SEC official, and Steven Grigoriou.
For more details on the subject, check the original article on Bloomberg Law.