A financial commitment by Apollo Global Management, a leading alternative investment manager, will make up to $1 billion available through its subsidiary MidCap Financial for repurchasing private, student-refinanced loans originated by credit unions through LendKey, the New York City-based technology platform that serves 305 community financial institutions.
The agreement, announced today, creates a one-of-a-kind, private secondary market for the loans that already adhere to credit union underwriting standards and will retain the issuing credit union's identity, brand and member relationship even after the loans have been sold, according to LendKey CEO Vince Passione.
"We've created a liquidity market for some of our credit union clients that allows them to maintain their longevity in the student lending market," Passione said. "We think this is a big win for everyone."
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