Apollo President Sees More Private Credit Fund Outflows
Apollo Global Management President Jim Zelter expects wealthy individuals to continue withdrawing capital from retail-focused private credit funds following recent outflows. While underlying performance remains solid, Zelter noted that market turbulence persists as investors navigate concerns over valuations and artificial intelligence.
APOLLO GLOBAL MANAGEMENT INC President Jim Zelter expects wealthy investors to continue withdrawing capital from retail-focused private credit funds. Net outflows hit these vehicles early this year as concerns grew over loan valuations and artificial intelligence disruption to borrowers. The trend signals a shift in liquidity expectations for private assets typically marketed as stable income sources.
### Private Credit Faces Redemption Pressure Zelter told the Bernstein Strategic Decisions Conference that recent redemptions are likely to persist. Investors pulled more capital than they committed during the first quarter, targeting funds that lend to mid-sized companies. Zelter noted that while underlying fund performance remained solid through March, April, and May, he does not anticipate a sharp drop in exit requests.
