Secondaries | Investment Insight
March 30, 2023
The Expanding Opportunities for Sponsor and Secondary Solutions
![](/adobe/dynamicmedia/deliver/dm-aid--4ca8f6b2-0ee9-46bb-ae04-59f6618dc308/the-expanding-opportunities-for-sponsor-and-secondary-solutions.jpg?quality=85&preferwebp=true)
Today, investors face a unique and challenging macroeconomic environment, defined by tightening monetary and financial conditions, inflation and volatility. Against this uncertain backdrop, we believe that there will be an increased desire for liquidity and that private market secondaries are poised to offer flexible capital and creative solutions to both LPs and GPs.
Veena Isaac | Co-Head of Apollo Sponsor & Secondary Solutions (S3)
Steve Lessar | Co-Head of Apollo Sponsor & Secondary Solutions (S3)
Konnin Tam | Co-Head of Apollo Sponsor & Secondary Solutions (S3)
We believe that flexible, opportunistic, and diversified secondary strategies could be well positioned to capitalize on distress and dislocation to provide investors with excess return per unit of risk. We see a compelling opportunity set for nimble secondaries market investors who can provide a range of tailored investment solutions, particularly in mid-sized secondaries transactions.
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![2024 Mid-Year Outlook: An Unstable Economic Equilibrium](/content/dam/apolloaem/images/insights/2024/2024-mid-year-outlook-an-unstable-economic-equilibrium.png)
While the Fed’s rate hikes have reigned in growth, especially among over-levered consumers, corporates, and banks, the easing of financial conditions since the “Fed pivot” in December continues to offset the effect of higher rates. For the rest of 2024, we expect economic growth to be higher than consensus and inflation to stay above the Fed’s target. We see no Fed cuts in 2024.
![PE Secondaries: Evolving Landscape Can Expand Opportunities](/content/dam/apolloaem/images/insights/2024/evolving-landscape-can-expand-opportunities.jpg)
Private-equity secondaries have developed into a core alternatives allocation for many investors. Led by the expanding opportunity in GP-led secondaries and heightened liquidity needs, we believe the secondaries market for PE will double or triple in size in the next five years.
![Mind the (Funding) Gap: Finding Opportunities in Real Estate Debt Amid Dislocation](/content/dam/apolloaem/images/insights/2024/mind-the-funding-gap-finding-opportunities.png)
Real Assets | Investment Insight
Mind the (Funding) Gap: Finding Opportunities in Real Estate Debt Amid Dislocation
Higher interest rates have pressured real estate prices, but fundamentals remain stable across most property types. In this class, Scott Weiner, Global Head of RE Credit, examines the state of the real estate market and discusses the opportunity in RE debt in light of wider spreads, more lender-friendly terms, and significant refinancing needs.