Apollo launches platform to make large loans

(Reuters) - Buyout firm Apollo Global Management Inc APO.N said on Monday it is creating a new credit unit to provide companies with loans of about $1 billion.

The new unit, Apollo Strategic Origination Partners, is expected to provide $12 billion in loans over the next three years through direct lending.

In direct lending, credit providers make loans and keep them on their books instead of syndicating them out to intermediaries such as investment banks.

Abu Dhabi state fund Mubadala Investment Co is the lead backer of the venture and Apollo plans to pull in additional capital from other investors.

Mubadala is the second-biggest state investor in Abu Dhabi after Abu Dhabi Investment Authority (ADIA).

Reporting by Bharath Manjesh in Bengaluru; Editing by Maju Samuel