March 31, 2025
Family Office Insider
As we turn the corner on the first quarter of 2025, one thing is clear: The volatility we’ve seen in the markets over the past several months shows no sign of dissipating. With that in mind, we thought it prudent to focus on a word on every investors’ mind: Liquidity.
One of the most resonant themes within Apollo right now is the concept of fixed income replacement. With heightened levels of market volatility, many family offices are reevaluating their so-called “safe” or income-producing assets in traditional fixed income portfolios.
In December, we published a paper, “Demystifying the Opportunity in Investment Grade Private Credit,” that rebutted the conventional assumption that private investments inherently carry more risk—and less liquidity—than public investments. This is a key area of focus for the firm. We estimate that private credit commands an addressable market value of the $40 trillion1, which is predominantly investment grade and includes bank loans, trade credit, corporate credit, consumer credit, mortgages, and asset-backed securities.
As the private credit market has gained a larger share of the overall credit market, some have argued that private credit is inherently riskier than its public counterpart. We disagree. For more on that, please consider listening to this recent episode of our podcast, The View from Apollo, in which our chief economist Torsten Sløk discusses the changing nature of credit markets with Apollo partner and global head of trading John Cortese.
We continue to think strategically about how to best help family offices unlock liquidity in a timely manner.
If you’d like to learn more about any of these topics, don't hesitate to reach out your Apollo relationship manager.
Sincerely,
The Apollo Global Family Office Team
Thoughts from Our Leaders
Can Private Markets Be the Alternative to Lofty Public Market Valuations?
High public market valuations pose a key question for allocation adjustments in 2025: What can one do to enhance potential returns, improve diversification, and mitigate volatility? Alexander Wright, Partner and Global Wealth Strategist at the Firm, discusses these questions and more.
Read the paper or listen to the podcast
Beyond 60/40: Private Assets in an Era of High Public Valuations
In this episode of The View from Apollo podcast, Apollo Chief Economist Torsten Slok speaks with Matt O’Mara, Apollo Partner and co-head of Apollo Aligned Alternatives, about how a combination of elevated public stock and bond valuations, recalcitrant inflation, and higher-for-longer interest rates could be creating new challenges for 60/40 portfolios and an attractive entry point to private markets.
In the News
Bloomberg Masters in Business: Torsten Slok
Bloomberg’s Barry Ritholtz and Apollo Chief Economist Torsten Slok discuss the US economy, inflation abroad, and what sectors are most exposed to the second Trump administration's policy agenda.
Listen on Bloomberg.com | January 2025
S&P Global Fixed Income in 15: Apollo’s John Zito on Private Credit, His Career Path & Leadership
This episode of S&P Global’s Fixed Income in 15 podcast, features John Zito, Co-President of Apollo Asset Management and Alex Birry, Global Head of Credit Research at S&P Global Ratings. Topics include views on private credit and the evolution of private markets, John’s career trajectory to Apollo, Alex on global mega trends and John’s advice for managing high performing teams.
Listen on S&P Global | January 2025
- Apollo analysts. Valuation is based off the market size of the asset classes within the investable universe.
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