A unit of Leon Black’s Apollo Global Management LLC is raising a $1.1 billion collateralized loan obligation in what would be the largest such fund formed this year, according to a person with knowledge of the deal.

The proposed CLO for Apollo’s credit business would exceed an $856.8 million fund raised in March by Guggenheim Investments, according to data compiled by Bloomberg. JPMorgan Chase & Co. and Citigroup Inc. are arranging the Apollo deal, said the person, who asked not to be identified because the information wasn’t public.

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