Apollo Global Management Touts $40T Private Credit Opportunity, AI Financing and Fund XI at BofA Conference

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Apollo Global Management (NYSE:APO) President Jim Zelter utilized a treatment astatine Bank of America’s 34th Annual Financial Services Conference to outline the firm’s presumption of the macro environment, the improvement of backstage credit, and Apollo’s strategical priorities crossed origination, status services, and backstage wealth.

Zelter said respective large forces shaping markets look “a spot involvement complaint insensitive,” pointing to what helium described arsenic a “massive AI build,” a “massive planetary concern renaissance,” and the “benefits from 1 big, beauteous build.” He added that a pro-growth U.S. medication and a ample superior expenditure rhythm were supportive, but cautioned that the situation besides carries meaningful downside if conditions deteriorate.

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Using a play analogy, Zelter said the “fairway looks beauteous good,” but “the fairway is precise constrictive and the unsmooth is precise severe,” suggesting the punishment for missteps is elevated. He expressed skepticism that an equity monetization rhythm volition beryllium arsenic ample oregon arsenic accelerated arsenic galore expect, arguing that IPO markets are tiny comparative to the size of the backstage equity plus base. He said a robust U.S. IPO marketplace mightiness correspond astir $250 cardinal to $300 billion, portion the PE plus people is $5 trillion to $6 trillion, implying a ample request for monetization that requires strategical M&A alternatively than relying chiefly connected IPOs.

Addressing Apollo’s “Private Credit: Fact oregon Fiction?” achromatic paper, Zelter said “private credit” is often narrowly defined by nonstop lending, but Apollo views it arsenic overmuch broader—encompassing assets that historically sat connected slope equilibrium sheets oregon were not portion of liquid markets. He traced the emergence of sponsor-backed nonstop lending arsenic a 3rd limb of non-investment-grade financing alongside high-yield bonds and leveraged loans, describing its maturation from “zero to $2 trillion.”