Apollo Says Bank Tie-Ups Crucial for High-Grade Private Credit

(Bloomberg) -Apollo Global Management Inc. According to President Jim Zelter, the attempt to finance the investment class companies of the private loan will fall into their partnership with banks.

In an interview with Bloomberg TV, Zelter said, the future of the Ig special loan is really partnering with banks – no doubt, ”he said.

According to Zelter, Apollo has 12 partnerships with banks. These include BNP Paribas SA, Citigroup Inc., Standard Chartered PLC and others with “special or not announced, but still very active”.

Investment class companies traditionally turned to banks for financing. However, private credit companies follow ways to diversify beyond lending for risk companies. Apollo said that investment class opportunities can increase the total private credit market to 40 trillion dollars.

Partnerships emerged as a way of fees of banks, but emptied some of the financing burden to private loan companies. It is also a way to provide different parts of the capital structure of the set that gives two loans.

Zelter said that a bank may prefer an appetite or credit for more high -level positions than a special loan counterpart.

According to Zelter’s view, some governments may have limited budgets, and there are many opportunities in Europe, as investment class companies in sectors, including energy transition or data centers, cannot meet the capital spending needs.

According to Zelter, Apollo is particularly interested in private investment class credit opportunities in Germany.

Zelter said that a large number of capital expenditures in the country are delayed. As a result, debt and other long -term capital are “particularly suitable for opportunities in Germany.

Apollo’s credit business has led the existence of $ 690 billion in public and private markets as of June 30th.

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