Apollo’s Kleinman sees strong private capital deployment ahead
Private capital is entering a period of strong deployment opportunities as companies face unprecedented funding requirements for investment and infrastructure, according to a report by Bloomberg citing Scott Kleinman, co-president of Apollo Global Management.
Corporate capital expenditure needs are at their highest levels in Scott Kleinman's career, according to a report by Bloomberg. The Bloomberg report cites Kleinman, co-president of Apollo Global Management, speaking at the IPEM Private Equity Conference in Paris. Kleinman noted that public markets were not providing enough funding to meet demand, creating opportunities across various sectors of private finance.
Apollo Global Management, once a traditional buyout firm, has evolved to become a major provider of substantial financing to corporations and infrastructure projects. The company has committed billions of dollars to individual transactions, including financing for offshore wind development and nuclear facilities. Kleinman emphasized that Apollo has no intention of becoming a bank, but acknowledged that few financial institutions possess the capability to offer tens of billions of dollars through structured financing.
The surge in AI investment presents significant demand for capital to fund data centers and the energy infrastructure to support them. Despite potential future credit market downturns, Kleinman does not believe the market is currently experiencing such a cycle, pointing to relatively tight spreads as evidence of market health. He also refuted the notion that private equity's difficulties in realizing investments signal a structural problem within the asset class, attributing the pressure to companies acquired during an era of elevated valuations before interest rates surged.
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