The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Jonathan Guilford

NEW YORK, May 11 (Reuters Breakingviews) - As Apollo weighs selling one $3 bln fund, Blackstone and KKR are helping prop up some of theirs. Rising defaults suggest troubles extend beyond software and big-ticket deals. If basic mid-size business lending is vulnerable, too, there's more reason to question the entire model.

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CONTEXT NEWS

Apollo Global Management is in talks to sell MidCap Financial Investment, or MFIC, a publicly listed business development company, the Wall Street Journal reported on May 10, citing unnamed sources. MFIC invests in non-bank loans to midsize corporate borrowers, primarily those originated by Apollo-owned lender MidCap Financial.

CEO Tanner Powell said on MFIC's February earnings call that Apollo has "been active in evaluating potential strategies and options" with respect to its public vehicles.