Navigating Growth in Private Debt: In-Depth Perspectives from Apollo Global Management

In a recent interview, Marc Schulthess, Deputy Head of Vontobel cosmofunding, spoke with Leslie Mapondera, Partner and Co-Head of European Credit at Apollo, to explore the growth and opportunities within the private debt market. Leslie emphasized Apollo’s unique position, offering capital at scale with creativity and speed, which complements traditional bank financing. Their approach enables meaningful partnerships and supports large corporates.

Apollo’s strategy, with nearly $700 billion in assets, leverages permanent capital from its retirement services businesses, aligning interests with third-party investors. Leslie noted Europe’s untapped potential for private credit, as most lending is still bank-driven, unlike in the U.S., where private markets play a more active role. New sectors, such as fund finance and securitized financing, present emerging opportunities, while the evolving economic landscape, driven by energy transition and digital advancements, continues to boost demand.

For the AT1 market, significant developments, particularly after the Credit Suisse AT1 write-down, have led to tightened credit spreads, and renewed optimism as central banks adjust policy rates. Looking to 2025, Apollo anticipates growth across sectors in Europe, particularly in areas of sustainability and technology, where private credit plays a critical role.