Apollo Management LP, the buyout firm run by Leon Black, has invested in a company that buys residential mortgage assets, joining other firms seeking to profit from lower prices.
The company, Vantium Management LP, has hired Michael Commaroto — Deutsche Bank AG's former head of private-label, mortgage-backed securities and whole-loan trading — and Paul Mangione — a former managing director at the German banking company — according to a spokesman for Apollo, Steven Anreder.
Amy Brandt, the former head of General Electric Co.'s now-shuttered WMC Mortgage (which GE bought from an Apollo fund in 2004), said she has been consulting with Apollo Management but declined to answer other questions.
The record jump in mortgage foreclosures has created an opportunity for some investors to try to profit. These include BlackRock Inc., which is backing a loan buyer founded by a former Countrywide Financial Corp. president, and the mortgage bond pioneer Lewis Ranieri, who is seeking $1 billion for a new fund.
Securities backed by subprime or second mortgages have fallen 25% on average in the past six months, according to Lehman Brothers index data.
