Apollo Global Management (APO) Bank of America Securities Financial Services Conference summary

Macro and market outlook

• U.S. fundamentals remain strong with continued consumer spending and robust portfolio performance, but inflation is still a concern and rates are expected to stay higher for longer.

• Modest pickup in IPO and M&A activity is expected, but not a dramatic surge; valuation gaps and interest rates are key constraints.

• Europe and Asia (excluding India) face sluggish growth, with Germany in its third year of 0% growth, while the U.S. continues to outperform.

• Cautious optimism prevails, but the risk of a recession remains after a long expansion period.

Private credit, equity, and fundraising trends

• Private credit continues to attract strong allocations, mainly from traditional credit, due to improved risk-return profiles.

• Allocations to private equity and infrastructure are expected to pick up over the next year or two, but private credit remains healthy.

• Fundraising for flagship buyout Fund 11 is anticipated to begin in late 2024, with most capital raised in 2026; expectations are for at least matching or exceeding the previous $20 billion fund.

• Hybrid Value and evergreen credit products are also scaling, with total fundraising this year expected to surpass last year.

Strategic focus and growth targets

• Origination of high-quality alternative products is the top priority, with a focus on expanding from institutional to retail and mass affluent markets.

• Five-year targets include 20% average FRE growth, 10% SRE growth, $15 ANI, and $1.5 trillion AUM, driven by organic execution rather than major acquisitions.

• Bolt-on acquisitions may accelerate growth but are not expected to fundamentally alter targets.