Apollo Bets on Pay-to-Play Strategy in Citi Private Debt Tie-Up

It was the perfect opportunity to showcase the benefits of Apollo Global Management Inc.’s nascent private credit partnership with Citigroup Inc.

Boeing Co. was selling its Jeppesen navigation unit, and whoever won the bidding would need a multibillion-dollar debt package to support the acquisition. Citigroup was advising the planemaker on the sale, and was giving Apollo an inside track on the financing, bringing the asset management giant in earlier than anyone else and touting its private staple, a form of pre-arranged funding offered to potential buyers.

Instead, the deal has left market participants scratching their heads about the benefits ...