The View From Apollo What’s Driving the Shift in Portfolio Construction: Private Credit, Private Equity, and the New Market Reality
6 snips
Oct 23, 2025 Akila Grewal, Apollo's Global Head of Product, dives into the dynamic world of private credit and equity. She explains how private credit's growth stems from real fundamentals rather than speculation. Grewal highlights the shift in portfolio construction, where investors are now prioritizing liquidity and long-term yield. She discusses the evolving demand for tailored financing solutions and the doubling-down on operational value in private equity exits. Furthermore, she points out Europe's promising capital needs and the innovative product adaptations to meet client liquidity preferences.
AI Snips
Chapters
Transcript
Episode notes
Private Markets Reflect Economic Reality
- Private markets represent the bulk of U.S. employment and earnings, so investor allocation growth is logical.
- Apollo warns risks exist but emphasizes underwriting quality over broad bubble claims.
Treat Private IG As Fixed-Income Substitute
- Reevaluate fixed income liquidity needs and consider private IG as a partial replacement.
- Accept less liquidity in exchange for excess spread on an investment-grade basis.
PE Needs Operational Alpha, Not Cheap Leverage
- Private equity must rely on operational value creation rather than cheap leverage and multiple expansion.
- Apollo emphasizes disciplined entry multiples and operational transformation to drive returns.