Atlas SP Partners, an asset-backed financing firm owned by Apollo, has £400m of senior exposure to mortgage bridge lender Market Financial Solutions, according to an Atlas statement. MFS was placed in administration this week amid fraud allegations.
Atlas’s exposure represents 20% of MFS’s £2bn senior asset-based finance debt, which is made up of ten warehouse facilities, according to a 9fin source.
“Following a breach of contractual terms by Market Financial Solutions, Atlas proactively put two warehouses into default last week and is pursuing all legal avenues to maximize recoveries. As a senior creditor, Alas has approximately £400m of exposure, or ~1% of its balance sheet, alongside several international banks,” Atlas said in a statement.
Apollo launched Atlas in 2023 after it bought a significant portion of the securitised products group of Credit Suisse.
The remaining 80% of MFS’s senior ABF debt is held by banks, the first source said. Barclays has £600m of exposure, as revealed in court on Wednesday (25 February). Barclays froze MFS’s bank accounts due to concerns raised by significant losses.
Jefferies, Santander and NatWest are among the other banks with exposure, as 9fin previously reported. Wells Fargois also...
