Apollo Global Management Sees Steady Private Credit Demand and Completes Note Sale

Apollo Global Management continues to experience robust demand for private-market assets among wealth clients, even amid unfavorable headlines facing private credit. Speaking at a conference, Stephanie Drescher, partner and chief client and product development officer, explained that financial advisers are actively pursuing private credit, real assets, and private equity while placing greater emphasis on manager selection and broad portfolio design.

Drescher highlighted significant potential for growth within the individual investor segment. Individual investors control approximately $150 trillion in capital, nearly rivaling institutional totals, yet allocate roughly 3% to private markets compared to 20% or more by institutions. Apollo is directing resources toward education, partnerships, and technology to improve transparency and integration alongside public investments. An event moderator noted Apollo has a $150 billion wealth-business target for 2029, with operations currently running at about 60% of the gross flow pace required.

Alongside its wealth expansion efforts, the alternative asset manager moved to secure fresh capital. On November 9, Apollo priced a $600 million debt offering of fixed-rate resettable junior subordinated notes carrying an initial annual interest rate of 7.550 percent through December 15, 2036. The notes are scheduled to close on November 13, delivering an estimated $594 million in net proceeds after discounts. The proceeds are intended for general corporate purposes, including financing its strategic investment relationship with Mubadala Capital Asset Management.

The firm recently launched European Credit Company following a difficult quarter marked by a 59.81% revenue decline and a reported net loss of US$851 million. Despite these financial swings, Apollo declared a quarterly dividend of $0.5625 per share payable on November 30 to shareholders of record as of November 18. Institutional investors have maintained an active presence, with Commonwealth Equity Services LLC lifting its position by 1,382.7% and Kestra Investment Management LLC increasing its stake by 655.8% during the third quarter.