Merx Aviation Finance Holdings
• Airlines have been horrible for equity investors, but the industry
is great to creditors.
• The lessors have generated cumulative profits on the back of
• Airplanes are valuable collateral, which back every lease and
loan Merx underwrites.
• Air traffic tends to grow with population and GDP, making it an
excellent investment as capacity grows year after year.
• Merx was last marked at 12.2% of the portfolio in a
combination of debt and equity.
U.S. Security Associates
• U.S. Security Associates provides security staffing around the
• The company has 160 offices, and 46,000 employees, making it
one of the biggest players in private security.
• The company’s scale and breadth makes it a go-to provider of
security personnel with a simple call.
• This investment is marked at 4% of Apollo Investment’s
• Apollo’s investment is limited to debt, which currently yields
• Playpower creates many of the playgrounds you see every day.
• Their best known brand, little tikes commercial, designs and
builds large playground equipment.
• Playpower was last marked at 3% of the portfolio.
• Apollo holds preferred equity, and equity in Playpower.
• Apollo carries its equity investment below cost, noting in its
filings that the equity is currently nonincome-producing.
• This isn’t a pharmaceutical company.
• It provides consulting and testing services.
• Its “Clinical” division does the Guinea Pig operations -- finding
people for FDA tests and trials.
• Its commercial and consulting services help companies market
their new drugs.
• The company was last marked at 2.8% of assets.
• Apollo holds a debt investment, which yields 11%, below its
• Kronos is in the business of “workforce management solutions”
• Its products help schedule and manage employees for small and
• Kronos was previously a public company; it was taken private
• Apollo last marked its debt investment in Kronos Inc. at 2.8%
• The second-lien debt investment currently yields Libor + 8.5%