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Our Business

Investment Strategy

Apollo Investment Corporation's investment objective is to generate current income and capital appreciation.  We invest primarily in various forms of debt investments, including senior secured loans, subordinated and mezzanine investments and/or equity in private middle-market companies.  From time to time, we may also invest in the securities of public companies.
Our portfolio is comprised primarily of investments in subordinated debt, sometimes referred to as mezzanine debt, and senior secured loans of private middle-market companies that, in the case of senior secured loans, generally are not broadly syndicated and whose aggregate tranche size is typically less than $300 million.  From time to time our portfolio also includes equity interests such as common stock, preferred stock, warrants or options.  We use the term "middle-market" to refer to companies with annual revenues between $50 million and $2 billion.  While our investment objective is to generate current income and capital appreciation through investments in U.S. senior and subordinated loans, other debt securities and equity, we may also invest a portion of the portfolio in other investment opportunities, include foreign securities.  Most of the debt instruments we invest in are unrated or rated below investment grade, which is an indication of having predominantly speculative characteristics with respect to the capacity to pay interest and principal, such securities are often referred to as "junk".
Our targeted investment size ranges between $20 million and $250 million, although this investment size may vary proportionately as the size of our available capital base changes.