Apollo Global Management Inc.’s lending arm, MidCap Financial, raised more than $800 million this year from a group of global investors as demand for private credit surged.

The money — from pensions, sovereign wealth funds and Apollo clients — will be used to expand MidCap’s business, the company said Thursday in an emailed statement. The unit, which oversees or provides services for about $30 billion of commitments, focuses on financing real estate, middle-market companies and corporate takeovers led by small private-equity firms.

Private-credit firms are in the market seeking to raise a record $301.4 billion, according to London-based research firm Preqin. And with global interest rates near historic lows, a hunt for higher-yielding investments is helping to kick-start fundraising.

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Source: Bloomberg Quint

By Heather Perlberg