The private equity party is not over - by a long shot. There are a number of oversold quality stocks out there including Blackstone (NYSE:BX), Fortress (NYSE:FIG), Capital Source (NYSE:CSE) and one that has not been in the headlines, Apollo Investment Corp. (NASDAQ:AINV).
These long term investments yield between 8% and 12% in dividends. Apollo is a business development company that invests capital in small and medium size companies and actually has a cash balance that exceeds its debt.
It does have risks like most traditional lenders. It has a good mix of subordinated debt and second lien loans (which provide a higher rate of return however a higher risk in default), and equity (ownership). Its $2.3 billion in investments include foreign and domestic investments in marketing, b2b, energy exploration, health and educational services companies, to name a few.
Apollo pays a dividend of over 9% which makes this a great long term hold. The volatility of the last few weeks should not scare anyone away from this private equity play. Quarterly earnings will be revealed after market close on Wednesday, and I expect no surprises. The stock has fallen over 15% over the past couple of months and is now around $20 per share with a P/E of 5.5.
Before investing in any of these companies I would advise you to check their corporate websites where they clearly explain their investment objectives and the companies that they invest in. If your investment objective is to make money over time, Apollo is surely one to consider.
Disclosure: Author is long AINV