Alternative asset manager Blue Owl Capital, which has $174bn in AUM across credit, GP strategic capital and real estate, has appointed Johann Santer as a Managing Director and Head of APAC Private Wealth, based in the company’s Hong Kong office.

Santer who joins from Fidelity International, where he served as Regional Lead for Wholesale alongside his role as Head of Private Banking, will report to Sean Connor, President & CEO of Global Private Wealth.

At Fidelity he was responsible for the wholesale strategy across the company’s largest client channel in the region and one that was increasingly aligned to wealth. During his tenure, he led the buildout of Fidelity International’s private banking and wealth franchise in the APAC region, adding coverage of Hong Kong and Singapore.

Prior to Fidelity, Johann was Managing Director and Head of Investment Specialists, Funds Hong Kong at bank Julius Baer. Johann also spent 10 years at a leading quant-based hedge fund overseeing global fund distribution.

Blue Owl established its APAC wealth presence in 2021 and partners with many of the largest wealth platforms in the region across its credit, GP strategic capital and real estate investment platforms.

Apollo Global Management is in advanced discussions with Intel over a deal to provide more than $11bn in capital to finance the chip manufacturer’s construction of a new plant in Ireland, according to a report by the Wall Street Journal.

The report cites unnamed people familiar with the matter in confirming that an agreement could be reached as early as the next few weeks although nothing has been finalised at this point and the deal could yet fail to progress.

Other alternative investment firms including KKR and infrastructure investor Stonepeak have been in the running to provide finance for the project, although Apollo’s capital solutions business, which typically provides financing to large investment-grade companies, is now the front-runner.

A trade in the riskiest segment of the $1.3tn credit market is attracting the most conservative investors, leading to concerns that they may be overlooking some risks in their pursuit of higher yields, according to a report by Bloomberg. 

The report cites several anonymous asset managers in revealing that pension plans and insurers have been increasingly investing in funds that focus on equity tranches of collateralised loan obligations (CLOs) in recent months. This influx of capital has enabled numerous hedge funds and other money managers, including GoldenTree Asset Management, Sculptor Capital Management, Carlyle Group and CVC Credit Partners to raise at least $3.1bn in less than a year for strategies dedicated exclusively to these investments.

While the investor base has typically comprised other hedge funds, family offices, and sovereign wealth funds, the prospect of higher yields is now drawing more traditionally risk-averse capital, particularly from pension funds, though pension inflows into CLO equity are not new, with the Canada Pension Plan Investment Board being involved as early as 2018.

Meanwhile, CLO equity pools, which were previously difficult to raise due to inherent risks, are growing.

Those raising CLO equity funds assert that the risks are clearly communicated. Others in the report express concern that pensions moving into these investments may be assuming too much risk for returns that have not always met expectations, which Dan Zwirn, Founder and CEO of $3.5bn New York-based institutional manager Arena Investors, echoed: “There’s this “pretend notion that because default rates are low, everything’s fine.

“But it’s not about defaults, it’s about recoveries and actual losses and that’s what people miss.”

The CLO market is reviving after two years of stagnation, with sales of new US CLOs increasing by 64% this year compared to the same period in 2023, according to Bloomberg’s data.

GoldenTree, which exceeded its goal to raise $1.3bn for investment in first-loss equity tranches of CLOs, secured support from both existing and new investors including pensions. Alternative investment platform Sagard and CLO manager Irradiant Partners have also raised CLO equity funds in the past year.

Mahesh Bhimalingam, chief European credit strategist at Bloomberg Intelligence, points to total arbitrage having shown a premium of more than 200 basis points over the last six months, which will lead to more funds likely pursuing the strategy if its success continues.

In Europe, regulations limit how much insurers and pension funds can allocate to these higher-risk

PlayAGS will be acquired by affiliates of private equity firm Brightstar Capital Partners, with the deal valued at $1.10bn. The company’s board has approved the acquisition and recommended shareholders also vote in favour of the proposed deal.

Brightstar invests in industrial, manufacturing and services businesses.

Under the agreement, PlayAGS shareholders will receive $12.50 per share in cash. This represents a 41% premium to the volume-weighted average share price over the last 90 days and a 40% premium to closing price on 8 May. This is the day before the acquisition became public.

If the deal completes, PlayAGS will become a privately held company. Its shares will not list on any public markets. Subject to regulatory and shareholder approvals, the acquisition will close in the second half of 2025.

Macquarie Capital is serving as financial advisor and Cooley as legal counsel to PlayAGS. Jefferies is lead financial advisor to Brightstar, with Barclays and Citizens JMP Securities as financial advisors and Kirkland & Ellis as legal counsel.

PlayAGS CEO David Lopez believes that the acquisition marks an “exciting” chapter for the business, and says that Brightstar will support the company’s expansion in markets around the world.

“We are very pleased to reach this agreement,” Lopez said in a press statement. “We believe it provides our stockholders with compelling, certain cash value. Joining forces with Brightstar represents an exciting new chapter for PlayAGS and our mission to provide exceptional gaming solutions for our operator partners.

“With Brightstar’s resources and strategic guidance, we believe PlayAGS will be well positioned to make targeted investments in R&D, top talent, operations and industry-leading innovation, which should accelerate our global footprint.”