Apollo's Zelter: Private Credit a Tool to Get Deals Done

The video discusses the current market hesitation in deal-making due to economic uncertainties like inflation and debt ceiling concerns. It highlights the challenges faced by private equity investors, such as asset pricing and M&A volumes. The role of private credit as a reliable financing tool is emphasized, noting its attractiveness due to higher yields. The video also explores global trends in credit allocation, with investors increasingly allocating more to private credit.

What are some of the current economic concerns affecting the financing markets?

• Technological advancements

• Inflation and economic slowdown

• Rising unemployment rates

• Decreasing oil prices

Why are M&A volumes currently down according to the transcript?

• Lack of available financing

• High interest rates

• Discrepancy between purchase and seller prices

• Increased competition

What is a significant advantage of private credit for private equity firms?

• Certainty and quick market access

• Tax benefits

• Lower interest rates

• Government subsidies

How has the perception of private credit changed over the past 10-15 years?

• It is now seen as a high-risk investment

• It is only suitable for small investors

• It has evolved from a binary asset class to a mainstream allocation

• It has become less popular

What factor is crucial for raising capital in private credit markets?

• Location of the firm

• Scale of the firm

• Type of industry

• Government regulations