07 Jun 2013, BioSpectrum Bureau , BioSpectrum
Singapore: New York- based business loans provider Apollo Investment is nearing the closure of an agreement to buy MidCap Financial LLC, which lends to drugmakers, medical device makers and other health-care related companies, for about $500 million, said sources.
According to the sources, a deal for MidCap may be announced early as next week. However, they claim that no agreement has yet emerged and the talks may still fall through.
Fifth Third Bancorp also had expressed interest in MidCap, said one of the sources. MidCap was working with Bank of America to find bids, they added. When contacted, representatives at MidCap, Apollo Investment, Cincinnati- based Fifth Third and Bank of America declined to comment.
MidCap began operations in 2008 with $500 million in investment commitments from Lee Equity Partners LLC, Genstar Capital LLC and Moelis & Co, according to a statement then.
Apollo Investment is managed by an affiliate of Apollo Global Management LLC, the buyout firm run by Leon Black. According to its annual report, it lends to health-care, finance, aviation and other types of companies with $50 million to $2 billion in annual sales.