AREFIN, formed in 2006, originates loans for development, redevelopment and repositioning, and invests in whole loans, B-notes and mezzanine loans. "The continuing credit crisis has created increased opportunity for us as both a buyer and originator of debt," says Bradford Wildauer, Apollo partner who oversees the firm's US debt investments. "We've experienced an increase in the number of opportunities presented to us with more attractive returns and greater ability to structure terms that meet our lending criteria."

Wildauer says ACC, the new vehicle, was formed to accommodate the increased deal flow and to handle loan commitments up to $250 million. "In managing AREFIN, we felt it was prudent to limit loan commitments and retained investment amounts for a single transaction," he explains. "The new vehicle gives us the ability and the flexibility to handle large portfolio transactions." Further comment on specific interests of the fund was unable to be answered by deadline.

As GlobeSt.com reported earlier this year, AREFIN and M&T Bank provided a $163.5 million floating-rate debt package to Taconic Partners and Square Mile Capital for the $172 million purchase of 375 Pearl St., a 1.2 million-sf office building known as the Verizon Building in Manhattan. Apollo arranged for M&T Bank to provide $110 million in senior debt financing.

Apollo has been busy. In July, it closed Apollo Value Enhancement Fund VII LP, with a total of $758 million, as GlobeSt.com reported. The flexible investment strategy of Apollo's Value Enhancement Funds is to focus on existing, income-producing US properties which present opportunities to increase value.

Instant Insights /

Apollo Increases Capital to $930M for Debt Fund

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