Principal, Risk Manager - Residential Real Estate (AASP)

Position Overview

An indirect wholly-owned subsidiary of Apollo Management Holdings, AASP Risk (AASP) manages the securitized products and structured finance assets sourced and serviced by ATLAS SP Partners and Apollo’s Asset Backed Lending business, serving as the dedicated risk management team.

The Role:

AASP is seeking a Principal to be the lead risk manager for the residential mortgage warehouse portfolio across all asset-backed ending activities, regardless of point of origination. He/she will be responsible for conducting both asset level and counterparty level credit reviews, evaluating and assessing fraud, reputational and collateral/security considerations, and for the continuous review and monitoring of residential mortgage finance exposures in the portfolio.

Reporting to the co-heads of Asset Backed Finance Risk Management, this Principal will work closely with ATLAS and Apollo credit professionals and other risk leaders within the AASP Risk team as well as with clients and key partners. The co-heads of Risk will rely on this senior risk officer to own the end-to-end risk in the portfolio including analysis on transactions, highlighting risk concerns early and ongoing, challenging the deal teams, gaining the expertise in asset classes he/she may not have it in from people who do (utilizing the ecosystem of partners available), form an independent risk view, and write a succinct risk memo/analysis. This individual will be a self-sufficient risk manager, handling transactions in a strong and independent way; this includes delivering an informed view to the Risk Heads and other Atlas and Apollo risk seniors. This candidate will act as an important control function, protecting capital and assessing downside risks.

The ideal candidate will have experience as a Credit Risk Officer in a decision-making role for mortgage and asset-backed financing transactions and is comfortable challenging the status quo and establishing guardrails the business can operate in. Product expertise is required for this role. Residential mortgage collateral includes but is not limited to agency, non-qualified mortgages, business purpose (or investor) loans, single family rental, HELOC and closed end seconds, mortgage servicing rights and servicer advances. The individual will review and assess new and existing transactions (warehouse facilities and whole loan pools), facility amendments and renewal requests and monitor the on-going credit quality of the portfolio.  This individual will have strong knowledge of the market and be able to communicate informed views of product and client risks including strength of originators and aggressiveness of terms and structure.

Primary Responsibilities:

• Underwrite risk in each transaction, including evaluating the financing structures, asset risk, the risk profile of the originators and servicers, reputational risks, collateral control risks, stress testing and analytics as well as gathering market intelligence

• Accountable for making risk decisions; act like an investor to approve transactions within a delegated level of authority

• Demonstrate an ability to challenge the business (sales/portfolio/structuring teams), substantiate support or dissent for a deal and where there is dissent, work with the deal team on structural improvements which might move a transaction from “no” to “maybe/yes”

• Participate in the deal underwriting process from inception and be involved over the lifecycle of a transaction, with greater involvement should asset classes be underperforming, higher risk, less liquid, more esoteric, etc.

• Work with Legal and the deal teams on the loan agreements to ensure that documents accurately reflect the deal structure, economic terms and asset waterfalls

• Work closely with other control function partners including i) Legal, Due Diligence, and Compliance to escalate and review any reputational or franchise risk considerations including fraud and double pledging risk and ii) Treasury to evaluate any liability or liquidity considerations. 

• Present risk concerns and due diligence findings, make a risk recommendation and answer questions of Investment Committee members or other senior stakeholders

• Produce documentation which includes thorough market, borrower, structure, and collateral analysis to support recommendation. This would include but not be limited to understanding and sensitizing stress testing analysis provided by the business and/or obtaining other market intelligence to support risk conclusions and considerations.

Qualifications & Experience

• Strong subject matter knowledge of multiple asset classes in the consumer and commercial sectors, including unsecured consumer, renewables, credit cards, student loans. Exposure to more bespoke or less liquid asset classes (venture debt, SME lending, fund finance) is highly beneficial

• Prior experience as an approver of credit

• Experience underwriting Corporates from a fundamental credit perspective

• Experience reviewing loan agreements

• Prior experience and responsibility for critical decisions of significant financial impact and complex criteria is a main requirement

• Ability to roll-up sleeves and work alongside 1LOD to underwrite highly structured warehouse (loan) facilities

• Strong foundation in risk while also very solution-oriented with a thorough understanding of the commercial needs of a business, especially one in a growth stage, but know how to balance that with risk discipline and control

• Strong analytical skills, multi-asset class experience, and an ability to build risk management tools to aid in governing the risk in the portfolio

• Extensive financial analysis and modelling skills, expertise in credit risk management, and strong understanding of risk metrics/models/systems

• Understanding of fundamental credit skills, ideally having spent time in a large bank or financial institution with structured credit training programs

• Exceptional attention to detail

• Prior experience and responsibility for critical decisions of significant financial impact and complex criteria

• Must have exceptional communication skills, both written and verbal and be comfortable presenting prospective deals to investment committee(s)

• Must be able to communicate complex risk-related concepts to both internal and external parties

• Ability to incorporate and understand information from variety of sources to stay ahead of market/economic trends and evaluate the impact on the portfolio

About Apollo:

Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes.

About AASP Management, LP (AASP):

AASP is an indirect wholly-owned subsidiary of Apollo Management Holdings, LP.  Currently, AASP manages asset-backed warehouse facilities and other securitized products and structured finance assets.  Additionally, AASP serves as the sole risk manager for ATLAS SP Partners (described below) and all of Apollo’s Asset Backed Lending business.

About ATLAS SP:

ATLAS SP Partners is a global investment firm that seeks to provide stable funding and capital markets services to companies seeking innovative and bespoke structured credit and asset backed finance solutions. ATLAS SP is proud to build upon a legacy of excellence anchored in deep expertise and client service across the asset management landscape.

Their expert team and integrated platform help determine the best approach to optimize clients’ capital structures and achieve their goals working across a broad range of services within principal investing, financing, capital markets and portfolio solutions.

ATLAS SP’s integrated platform encompasses a holistic suite of capabilities, including asset/portfolio advisory solutions, warehouse/acquisition financing solutions, whole loan purchase/sale and securitization/distribution.

ATLAS SP works with specialty finance companies, REITs, financial sponsors, mortgage lenders, corporates and others to unlock value from their existing asset base, accessing capital that goes beyond traditional unsecured debt and equity. They specialize in advising clients on how to reach their strategic goals, from providing early-stage asset backed capital, constructing flexible aggregation warehouse facilities, establishing securitization programs to accessing bridge capital and acquisition financing solutions.

The Company works with clients throughout all stages of the growth lifecycle — from early stage private to mature public companies — to access flexible capital through a variety of structures and capabilities, including asset/portfolio advisory, warehouse/acquisition financing solutions, whole loan purchase/sale and securitization/distribution.

ATLAS SP was created out of Credit Suisse’s Securitized Products Group, a top provider of credit solutions to lenders. Now as a standalone securitized credit origination platform, ATLAS SP continues to benefit from the team’s leadership, experience and operational strength to serve client needs across the full ABS financing spectrum.

ATLAS SP is backed by a diverse set of institutional capital partners, including affiliates of Apollo, and other third-party financial institutions. These relationships can provide ATLAS SP with investment-grade capital partners and strategic benefits designed to enhance its financial and operational strength and to accelerate growth in client offerings.

Our Purpose & Core Values

Our clients rely on our investment acumen to help secure their future. We must never lose our focus and determination to be the best investors and most trusted partners on their behalf. We strive to be:

• The leading provider of retirement income solutions to institutions, companies, and individuals.

• The leading provider of capital solutions to companies. Our breadth and scale enable us to deliver capital for even the largest projects – and our small firm mindset ensures we will be a thoughtful and dedicated partner to these organizations. We are committed to helping them build stronger businesses.

• A leading contributor to addressing some of the biggest issues facing the world today – such as energy transition, accelerating the adoption of new technologies, and social impact – where innovative approaches to investing can make a positive difference.

We are building a unique firm of extraordinary colleagues who:

• Outperform expectations

• Challenge Convention

• Champion Opportunity

• Lead responsibly

• Drive collaboration

As a One Apollo team, we believe that doing great work and having fun go hand in hand, and we are proud of what we can achieve together.

Our Benefits

Apollo relies on its people to keep it a leader in alternative investment management, and the firm’s benefit programs are crafted to offer meaningful coverage for both you and your family. Please reach out to your Human Capital Business Partner for more detailed information on specific benefits.

Pay Range

$300,000

Apollo Global Management, Inc. (together with its subsidiaries and affiliates) is committed to championing opportunity.

The firm and its affiliates comply with applicable discrimination and equal opportunities legislation in all of its jurisdictions and do not discriminate in employment or recruitment based on race, color, religion, gender, national origin, veteran status, disability, age, citizenship, marital or domestic/civil partnership status, sexual orientation, gender identity or expression or any other protected characteristic under applicable law.

The contents of the qualifications and experience section of this job description are a guideline only. If an applicant can otherwise demonstrate their suitability for the role they will be considered.

The base salary range for this position is listed above. This position is also eligible for a discretionary annual bonus based on personal, team, and Firm performance. Compensation ranges are based on several factors including job function, level, and geographic location. Final offer amounts are determined by multiple factors including candidate experience and expertise, and may vary from the amounts listed here.