Apollo Provides $745M in Asset-Backed Financing to Virgin Atlantic

Global alternative asset manager Apollo (NYSE: APO) announced that its managed funds have completed a $745 million senior secured financing of Virgin Atlantic’s portfolio of take-off and landing slots at London Heathrow, i.e., collateral at one of the world’s busiest airports.

Virgin said it would use the funds to pay down a legacy debt and make upgrades to its aircraft and cabins, such as the complete refurbishment of its Boeing 787-9 fleet and introducing upgraded interiors and expanded upper-class and premium cabins from 2028. Virgin also said that 10 new Airbus A330neo aircraft would join its fleet, featuring expanded premium cabins and six luxurious retreat suites, and that Starlink Wi-Fi would be added to its planes.

“We are pleased to partner with Virgin Atlantic on this transaction, which demonstrates our ability to provide bespoke, scaled financing solutions to leading businesses,” said Ben Eppley, Apollo partner.

Further, Samuele Cappelletti, Apollo partner, said: “This creative, asset-backed structure unlocks important capital investment for Virgin Atlantic, a strong, established brand that we believe is well-positioned for continued success with its differentiated offering in aviation.”

As is customary with private credit deals, the specific names of the Apollo funds involved were not given. However, the asset-backed structure of the transaction strongly points to Apollo’s direct lending and credit strategies and platform that engages in significant aviation-related financing.

Potential funds involved include Apollo Asset Backed Credit Company, a tender offer fund for private wealth investors; Apollo Diversified Credit Fund, an interval fund; and Apollo Debt Solutions BDC, a non-traded perpetual-life business development company sponsored by affiliates of Apollo Global Management and focused on investing primarily in private loans and debt securities, mainly to large-cap, private U.S. companies. The latter’s investments are generally in private credit and often involve participation alongside other Apollo-managed funds. Apollo Global Diversified Credit ELTIF, a European long-term fund, may also be involved.

Virgin Atlantic was founded by entrepreneur Sir Richard Branson in 1984, with innovation and amazing customer service at its core. Virgin Group retains a 51% share, with Delta Air Lines retaining a 49% share.

Earlier this year, AltsWire reported that Apollo and Blackstone Inc. (NYSE: BX) were among a group of prominent private lenders and asset managers assembling a $4 billion loan package to back private equity firm Thoma Bravo’s acquisition of several digital aviation assets from Boeing Co.

As of Sept. 30, 2025, Apollo had approximately $908 billion of assets under management.

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