Dallas, Texas 02/14/2014 (FINANCIALSTRENDS) – Apollo Investment Corp. (NASDAQ:AINV), the New York based Investment and management service provider is essentially a business development company. This means that it offers funds to small-sized as well as the medium sized businesses which do not pay corporate taxes. This allows players such as AINV to offer loans to these businesses at all levels. Banks and most financial institutions are unable to provide funds to businesses which are out of the corporate tax structure. The focus for this financial services management company has been income generation along with capital appreciation. Other players in the BDC segment include Prospect Capital Corporation, Fifth Street Finance Corporation as well as Medley Capital Corporation.
Apollo Investment Corp. (NASDAQ:AINV) is actively involved in such investments as debt investments, senior secured loans. The fund also offers several subordinated investment opportunities as well. There is high reason to indicate that mezzanine investments as well as equity for such of the companies which are positioned as middle market companies.
Apollo matches BDC criteria
Apollo Investment is known to offer good profitable returns, has its risks well laid out at its portfolio is diversified, though with volatile elements. The portfolio for AINV is well spread-out, valued at $2.63billion and also holds investment in over 71 countries. For diversity factor, it covers over 27 industries and has well-spread out loans of 40% secured loans and about 48% in subordinate debt. Overall the equity the fund holds is 12%.
Apollo Investment Corp. (NASDAQ:AINV) is also known to make investments in securities offered by public companies. The $1 billion in outstanding debt as of December 31 does not do good for this investment company.
Apollo Investment Corp. (NASDAQ:AINV) however is not favored by analysts considered the high risk levels of the company. However, in terms of evaluation, it holds P/E ratio of 9.9, which is much lower than what peers of this group offer.