March 31, 2026
Family Office Insider
While the broader economy remains resilient, markets have entered a more volatile phase amid elevated valuations, rising geopolitical and macroeconomic risks, AI-driven disruption in sectors like software, scrutiny of semi-liquid retail vehicles in private credit, and the gradual unwind of excesses from a 15-year bull market. Amid the ongoing flurry of headlines surrounding the broader private credit market, it feels appropriate to begin this quarter’s letter with a simple observation from our CEO Marc Rowan on Apollo’s position in the current environment:
“I like where we sit.”
While some participants are navigating their first real test after more than a decade of largely benign credit conditions, Apollo’s platform was designed with downside protection1 in mind. The key question for investors today is simple: Who has been a disciplined risk manager, and who has not?
The reality is that firms in our industry have made choices to bring us to this moment. In pursuit of higher yields, many took on additional risk—lending to smaller companies, relying more heavily on PIK structures, or operating with higher leverage. Those decisions may have looked attractive in a prolonged bull market, but they tend to look very different when the cycle turns.
Our approach has always emphasized scale, long-duration capital, disciplined underwriting and a focus on senior positions in the capital structure. We believe that combination positions us not only to navigate periods of volatility, but to take advantage of the opportunities they create. In other words, we believe this is exactly the type of market Apollo was built for.
The Next Phase of Private Equity
We’re seeing the same dynamic play out in private equity. In an easy-money environment, many managers effectively relied on a “buy high, sell higher” strategy, generating less value through disciplined entry prices and operational improvement.
That environment has changed. We believe the next phase of private equity will favor strategies grounded in the fundamentals that originally defined the asset class: disciplined entry prices, hands-on operational improvement and clear, repeatable pathways to liquidity.
For our flagship PE strategy, we also believe some of the most compelling opportunities are emerging beyond the traditional middle market and in large-cap private equity. The difference can be thought of as retail versus wholesale. In more commoditized segments of the market, many buyers pursue the same assets with similar tools in open processes where pricing—one of the biggest drivers of returns—is set by market clearing levels.
At scale, the dynamic changes. A smaller set of buyers can transact, relationships with sellers deepen and access improves, creating visibility into opportunities well before they are broadly marketed. Structuring becomes more bespoke, and outcomes are shaped through negotiation rather than competition alone. Together, these advantages expand an investor’s ability to drive value creation from the outset through access, insight and influence.
Importantly, this is not a shift for Apollo but a continuation of how we have been investing. With our mantra that “purchase price matters” and our focus on generating alpha at the buy, the build and the exit, this is exactly the approach employed by our PE strategies.
Generating Structural Alpha
In addition to providing family offices with the right PE strategy for a more demanding market environment, we are also focused on delivering it in the right structure. Today’s market presents a number of practical challenges for family offices: returns are under pressure in a higher-rate environment, distributions across the industry have slowed as exits lag, and many investors are finding it harder to allocate to new vintages while managing existing commitments. Our innovative new access point that allows investors to partially fund their PE commitment is designed with these dynamics in mind.
If you’d like to learn more about these topics, or have additional questions about our private credit platform, please reach out to the team, or your Apollo relationship manager.
Sincerely,
The Apollo Global Family Office Team
In Case You Missed It
On Apollo’s Position of Strength Amid Broader Private Market Turmoil
- CEO Marc Rowan outlined why private market turmoil may drive consolidation—and how Apollo’s platform is positioned to capitalize on the resulting opportunities.
- Co-President of Apollo Asset Management John Zito spoke with CNBC about Apollo’s low software exposure and focus on senior secured and asset-backed lending, topics he explored in depth with Partner Rob Bittencourt in AI and the Next Phase of the Software Cycle.
- President of Apollo Global Management Jim Zelter told Bloomberg that Apollo’s disciplined, principal-led approach and investment-grade focus equip the firm to navigate the next credit cycle. He also highlighted rising capital demand for AI buildouts and reinforced Apollo’s long-term thematic priorities, including retirement solutions and expansion in markets like Japan.
On Private Equity
- Co-Head of Private Equity and Head of Hybrid Matt Nord joined CNBC Squawk Box Asia to discuss Apollo’s views on the macro environment and market performance, highlighting long-term capex tailwinds, the significant private market opportunity in Asia and Apollo’s disciplined investment approach.
- Co-Head of Private Equity and Head of Equity David Sambur joined Bloomberg’s The Close to share why we expect to see greater manager dispersion in the post zero-rate era.
- David and Matt also penned a recent article with Deputy Global Head of Private Equity Antoine Munfakh exploring how back-to-basics value creation can drive alpha in 2026 and beyond.
Other Insights from across Apollo
- Apollo’s 13th employee and Co-President of Apollo Asset Management Scott Kleinman shares his perspective on Apollo’s evolution and how the firm is orienting the business today around several large addressable market opportunities, prioritizing origination and long-term balance-sheet alignment.
- Head of Apollo Infrastructure Group Olivia Wassenaar spoke to Livewire about Apollo’s infrastructure business and outlook for the sector, as well as the Australian energy market.
- Head of Asset Backed Finance Bret Leas breaks down what to expect in the asset-backed finance market in 2026.
- Managing Director, Origination, Paul Sipio discusses how digital streaming reshaped the music industry, transforming it from a hit-driven model into a predictable, long-duration cash-flow business.
- Akila Grewal, Partner and Global Head of Institutional Client Group explains why traditional portfolio frameworks are being tested and how a more intentional, total-portfolio approach is emerging.
1References to "downside protection" do not guarantee against loss of value, including the loss of the entire principal amount invested. The value of any investment could decline and/or become worthless."
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