Apollo Global Management (APO) Barclays 24th Annual Global Financial Services Conference summary

Macro environment and outlook

• Rates are expected to remain higher for longer, supported by strong economic growth and persistent low-level inflation.

• AI capital expenditure and investment-grade issuance are contributing to elevated rates.

• Recession risk is estimated at 10–20% over the next 12 months, with consumer spending and AI build-out as key economic drivers.

• Geopolitical and domestic risks are rising, but markets remain resilient as long as consumer and AI trends persist.

AI infrastructure and investment strategy

• AI-related opportunities are a major focus, with Apollo favoring financing and structuring over direct equity exposure.

• The approach centers on providing capital and bespoke solutions to large investment-grade counterparties in AI and related sectors.

• Massive capital needs across digital, energy, industrial, and defense infrastructure are expected over the next decade.

• Recent marquee deals with major tech firms are highly structured, investment-grade, and benefit Apollo and its partners.

• A significant portion of these transactions is retained on Apollo's balance sheet, subject to concentration limits.

Origination and sector/geographic opportunities

• Origination is central to growth, with opportunities in energy (traditional and renewable), transportation, logistics, and corporate sectors.

• North America remains a core focus, but there is increasing emphasis on Europe due to rising capital needs and less robust local markets.

• High-grade capital solutions have grown rapidly, with over 200 transactions and $150 billion deployed, offering corporates flexible, bespoke financing.

• These solutions are highly structured, requiring close collaboration with rating agencies for optimal outcomes.