Apollo, Ares Sued by Altice USA Over Alleged Credit Market Cartel
Antitrust lawsuit claims asset managers formed a pact to block access to credit ahead of a $26 billion debt restructuring, putting the private credit industry on notice.
A group of the world's largest alternative asset managers, including Apollo Global Management and Ares Management, are facing a significant legal challenge that strikes at the heart of the booming private credit market. Telecom company Altice USA has filed an antitrust lawsuit accusing the firms of forming a creditor cartel to manipulate credit markets and gain leverage ahead of critical debt negotiations.
The lawsuit, filed in a U.S. federal court, alleges that the investment giants led a pact to freeze Altice out of credit markets as the company prepares to restructure its formidable $26 billion debt load. According to the complaint first reported by Bloomberg Law, the firms allegedly used a cooperation agreement to prevent the telecom provider from securing financing, thereby strengthening their own bargaining position.
This legal battle puts a spotlight on the aggressive tactics and immense power wielded by private credit funds, a sector that has grown into a multi-trillion dollar force in global finance, often operating with less transparency than traditional public markets. The allegations suggest a coordinated effort to control lending terms, a claim that, if proven, could invite broader regulatory scrutiny of the entire industry.
Despite the gravity of the allegations, the immediate market reaction was muted. Shares of Apollo Global Management (NYSE: APO) were trading up approximately 0.4% at $130.67 in Tuesday morning trading. Similarly, Ares Management (NYSE: ARES) saw its stock climb about 1.8% to $152.93, indicating that investors may be waiting for more clarity before reacting to the legal risks.
The suit, also detailed by The Wall Street Journal, comes at a sensitive time for both borrowers and lenders. As companies grapple with higher interest rates, many like Altice are seeking to refinance and manage massive debt obligations. Lenders, in turn, have formed powerful creditor groups to negotiate terms, a standard practice now being questioned as potentially anti-competitive.
While the outcome of the litigation is far from certain, it represents a significant pushback from a major corporate borrower against the perceived dominance of private lenders. The case could set a precedent for how creditor groups operate and may force more transparency on an industry that has flourished in the shadows of traditional banking. For now, the financial world is watching to see if Altice's lawsuit is a one-off dispute or the first crack in the foundation of the private credit boom.