Leading with Private Investment-Grade Credit

What is Private Credit?

At Apollo, we view private credit as a $40 trillion market, a majority of which is investment grade. Non-traded – or “private” – corporate and consumer credit can be found on the balance sheets of banks as well as insurers, asset managers, pensions and many others in the investor marketplace. Private credit finances business growth and innovation, it supports household prosperity and it helps to fuel the real economy.

The vast majority of private credit is private investment-grade credit which helps to generate high-quality yield and retirement income for families and savers across the country. As the U.S. and much of the developed world navigate aging demographics and savings shortfalls, we believe private fixed income will continue to play an expanding role in supporting retirement security for millions of families.


Graphic illustrating how the opportunity in Private Credit has expanded over time by displaying a comparison of "Then" and "Now". Then: Private Credit was an approximately $1.7 trillion addressable market that included only Middle Market Sponsor Lending. Now: Private Credit is an approximately $40 trillion addressable market with a focus on  Investment Grade assets. The “Now” section of the graphic includes 17 different types of Private Credit including Fund Finance, Supply Chain Finance, Music Royalties, Corporate Loans, Equipment Finance, Inventory Finance, Auto Loans, Home Improvement, Residential Mortgages, CRE Debt, C – Pace, Aviation Finance, Railcar Leasing, Infrastructure Debt, Agricultural Lending, Franchise Finance, Corporate Fleet Finance, and Rental Car Finance.
Marc Rowan
“Private credit helps to fuel our economy, and the depth and diversity of its funding sources promotes resiliency in the financial system. Not only has private credit helped make U.S. capital markets the envy of the world, but also it generates stable investment income for a vast and growing population of retirees.” 

Marc Rowan
Chief Executive Officer


The Role of Private Credit

Diverse sources of credit promote resiliency in financial markets

In the U.S., businesses and consumers are not dependent on a single source of funding, and the depth of our private credit and securitization markets allow a wide array of borrowers to access financing. Much of this credit is funded by the investor marketplace – insurers, mutual funds, institutional investors and the like – which we believe promotes financial stability thanks to its diversified nature and de-leveraging effects. 

US Credit Markets are Diversified 

Chart displaying a breakdown of US Credit markets where 33% of nonfinancial business lending is “Bank” and 67% of nonfinancial business lending is “NonBank”

When Credit Leaves the Banking System, It Creates a De-Leveraging Effect 

Graphic showing how credit leaving the banking system has a de-leveraging effect. The chart shows approximate leverage for Banks at ~10-12x. Then it shows Institutional Investors at 0x leverage, Mutual funds at 0x leverage, BDCs at <1.5x leverage, REITs at <1.5x leverage, and Insurance at ~8x leverage.
Greater access to credit supports growth in the real economy 

Following the Great Financial Crisis, bank balance sheets have shrunk and retrenched from many traditional lending activities. Enter the investor marketplace, which has stepped in to fill the void, socializing credit among much larger and more diverse pools of capital, and often through structured securities that allow mid-sized business and consumers to access financing that is otherwise unavailable to them. Financing is the lifeblood of the economy, and at Apollo, we pride ourselves on our ability to be there for borrowers throughout market cycles, with retirement and investment funds that can be fully matched to corporate and asset-backed loans.  

Example: Insurance Balance Sheets are Fully Matched 

Chart with a title that reads “Illustrative Insurance Funding Model” and a subheading that reads “Reliant on Sticky, Predictable and Stable Liabilities, Able to be Duration-Matched.” There is a bar chart that shows liability duration and asset duration side-by-side and both are fully duration matched at 9 years. There is also a list to the right of the bar chart with checkmarks to highlight that this is Surrender charges & MVA, Tax Efficient, Not a Source of Daily Cash, and Fully Insured & Guaranteed
Private credit can generate attractive risk-adjusted returns and serve as a potential fixed income replacement

Private credit has the potential to provide investors with enhanced returns per unit of risk, including in private investment-grade assets. We believe this can be particularly meaningful in the context of an increasingly indexed and commoditized public fixed income market, and amid a growing retirement crisis in which savers need high-quality investment income. 

Graphic illustrating eroding return in public markets. There are two graphs side by side. On the left there is a line chart that shows Passive Funds as % of Public Credit Market growing from approximately 17% in 2014 to 37% in 2023. The chart on the right shows Excess Return of Active vs. Passive Corporate Credit Funds. The five year trailing as of YE 2016 is .80% and the five year trailing as of Q2 2023 is .10%. The two bars in the chart are connected by a red arrow pointing diagonally downward and to the right.
Graphic illustrating how the US retirement age population is growing. It shows 35 million people in 2000, 55 million people in 2020 and 80+ million people estimated in 2040. There is another chart showing a decline in guaranteed retirement income. In 2000, 48% of US retirement assets we held in defined benefit pension plans and in 2Q 2023 that was only 31%.

How Does Apollo Generate Private Investment-Grade Credit?

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Direct Origination

Apollo’s scale and expertise has enabled the firm to act as a flexible and reliable solutions provider to borrowers, providing corporate and asset-backed loans to some of the world’s largest and highest-quality companies on a bilateral basis. 

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Origination Platforms

Apollo has built an ecosystem of origination platforms focused on asset-backed and specialty lending. These businesses span aviation, equipment and trade finance, warehouse facilities and more. Across these 16 platforms, our ecosystem originates private investment-grade credit at scale. 

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Bank Partnerships

Apollo partners with banks on billions of dollars of private credit origination each year, often leveraging our collective origination capabilities and relationships in combination with Apollo’s long-dated, flexible capital base. 



By originating private credit, Apollo can apply its high lending and risk management standards, from rigorous due diligence and credit underwriting, to controlling documentation, to maintaining borrower relationships.

Case Studies

Business Overviews

Credit Platform 

We serve as a financing partner of choice for large corporates,  sponsor-backed businesses, specialty lending platforms and more.

Asset-Backed Finance

We serve as a financing partner of choice for large corporates,  sponsor-backed businesses, specialty lending platforms and more.

Origination Platforms

Apollo’s origination ecosystem spans 16 standalone platforms and thousands of professionals dedicated to high-quality private credit origination, financing companies across industries and geographies to support their growth. 

  1. Preqin Private Debt AUM as of June 2023.
  2. Represents the views and opinions of Apollo Analysts. Not an exhaustive list. Subject to change at any time without notice. 
  3. Source: Bank for International Settlements.
  4. Source: Bloomberg, Apollo Chief Economist. Note: Data is based on estimates from sample of 8,689 funds.
  5. Source: Morningstar’s Active/Passive Barometer, June 2023 & December 2016. Intermediate term bond fund performance equal weighted.
  6. Aged over 65. Sources: U.S. Census Bureau, Deloitte Insights.
  7. Source: ICI Retirement Institute.