Credit | Apollo Updates
March 29, 2024

Demystifying Private Credit

Apollo views private credit as a >$40 trillion market, the vast majority of which is investment grade. 

During a recent Economic Club of Washington, D.C. event with David Rubenstein, CEO Marc Rowan addressed common misunderstandings around the meaning of private credit in today’s market.

Marc Rowan:
Everything on a bank balance sheet is private credit. Everything. A mortgage is private credit. A loan to a business is private credit.

The press has taken private credit to mean something very, very specific and very nuanced. The press uses the word “private credit” to refer to loans, levered lending and buyouts. Levered lending and buyouts is a form of private credit, but it's a really, really small part of the market.

To give you a sense of size, $1.5 trillion out of $42 trillion is levered lending. The vast, vast majority of private credit is investment grade.

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