Apollo Global Management and KKR & Co are part of a consortium of private credit funds that are providing a £1.75 billion loan to facilitate the buyout and planned delisting of UK money manager Hargreaves Lansdown. Other notable lenders in this group include Blackstone Inc and HPS Investment Partners.

The financing is being arranged for CVC Capital Partners, Nordic Capital, and Platinum Ivy, a subsidiary of the Abu Dhabi Investment Authority, which have proposed a £5.4 billion deal to take Hargreaves Lansdown private. The loan is structured as a unitranche, combining senior and subordinated debt, which is a common arrangement among private credit lenders.

The loan pricing is set at 550 basis points over the reference rate, with an original issue discount of 98 pence on the pound. Representatives from the involved firms either declined to comment or did not respond to inquiries from Bloomberg News.

The private credit market, valued at approximately US$1.7 trillion, has increasingly become a preferred source of funding for take-private transactions. The trend reflects a growing appetite among investors for high returns through alternative credit options. For instance, last year, direct lenders provided a €4.5 billion loan to support the buyout of Adevinta ASA.