Apollo raises $600M in notes to help fund Mubadala Capital bet
What's the deal? Apollo Global ManagementDealroom has a profile for this one. Try Dealroom → has priced a $600 million offering of 7.550% fixed-rate resettable junior subordinated notes due 2056. The sale is expected to close on November 13, 2026, netting roughly $594 million after the underwriting discount.
How it works: The notes carry a fixed 7.550% coupon through December 15, 2036, then reset against the five-year US Treasury rate plus a spread of 2.672%. Interest is payable semi-annually, starting June 15, 2027.
Where the money goes: Apollo will use the proceeds for general corporate purposes, including funding its previously announced investment in Mubadala Capital Asset Management. Apollo and other strategic investors are expected to commit a combined $5 billion to the Abu Dhabi asset manager's strategies, alongside an equity stake.
Who's involved: J.P. Morgan, BofA Securities, Morgan Stanley, and Wells Fargo Securities are joint book-running managers. Co-managers include Barclays, BNP Paribas, Deutsche Bank Securities, and RBC Capital Markets.
Why now? The issuance follows Apollo's $750 million sale of 5.70% senior notes due 2036 in March, and a $500 million junior subordinated note offering in 2024 that carried a 6.00% coupon. The rising coupon tracks a higher-rate environment; US corporate bond issuance was up 19.5% year over year through October 2026, according to SIFMA.
The signal: This looks like targeted financing for strategic expansion rather than a response to funding pressure. By tapping debt markets to back the Mubadala deal, Apollo is extending its reach into Gulf capital at a time when US issuers are borrowing at a brisk pace.
Read more: in.marketscreener.com
Image credit: Ken Lund
