2002-2006
Early Years
Direct lending was small and bank-led, with tight documentation and conservative leverage.
Our Approach
Apogem prioritized business quality and cash-flow clarity, required strong covenants and collateral, and established the disciplined approach that continues to guide its underwriting today.
2001-2006
2006-2007
2008-2009
2010-2021
2022-Today
Expansion and Dicipline
Private equity activity surged, liquidity widened, and competition intensified.
Apogem scale sponsor coverage without loosening standards, remained selective on sector, structure, and leverage, and recognized that entry terms can materially influence realized results over time.
Market Expansion
Apogem scaled sponsor coverage without loosening standards, remained selective on sector, structure, and leverage, and recognized that entry terms can materially influence realized results over time.
Apogem prioritized business quality and cash-flow clarity, required strong covenants and collateral, and established the diciplined approach that continues to guide its underwriting today.
Global Financial Crisis
Severe stress tested underwriting, documentation, and organizational readiness.
Apogem activated its workout team (established in 2004), engaged constructively with sponsors, and sought to protect value through proactive amendments, collateral actions, and recoveries where appropriate.
Post-GFC Recovery
Post-GFC regulations reshaped the market as banks pulled back, allowing private lenders to become the go-to providers of direct lending. Demand surged, competition intensified, and years of low rates further loosened credit standards.
Apogem maintained its conservative underwriting, deal standards, and overall portfolio diversification strategy despite a frothy, competitive market. While many managers prioritized growth, Apogem stayed consistent, maintaining its sector focus, conservative structures, and portfolio diversity.
A New Credit Cycle
Higher rates, tighter liquidity, and wider dispersion in credit quality characterize the market backdrop for lenders.
Apogem applies lessons from the nearly 3,000 credit transactions closed over the last 25 years to inform underwriting. The team emphasizes downside protection through structure covenants, and pricing discipline. Support portfolio companies with follow-on capital where appropriate while remaining selective on new originations.
Apogem maintained its conservative underwriting, deal standards, and overall portfolio diversification strategy despite a frothy, competitive market.
Post-GFC regulations reshaped the market as banks pulled back, allowing private lenders to become the go-to providers of direct lending. Demand surged, competition intensified, and years of low rates further loosened credit standards. While many managers prioritized growth, Apogem stayed consistent, maintaining its sector focus, conservative structures, and portfolio diversity.
