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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Wednesday, January 8, 2025

Apollo Is A Leader In Private Credit

 


Apollo Global Management's assets under management are 733 according to its third quarter 2024 report.

598 billlion or 85 % of Apollo Global Management's assets are in private credit.

That makes Apollo a leader in private credit investing globally, according to Wolfteam Ltd.'s estimates. Private credit is a hot area, which enhances the yield investors get. Apollo buys up high yield bonds company involved in leveraged buyouts issue, invests in CLOs, CDOs with some acumen to increase returns.

Many institutional investors are showing great interest in private credit investing. That is why the inflows to Apollo and Apollo's assets are growing constantly in the last few years.This is reflected in the 31.94 billion USDs in revenue Apollo achieved in 2023, a huge increase on the prior years. At 96.4 billion USD market capitalization Apollo still looks undervalued. The intrinsic value of Apollo is 154 billion USD, according to Wolfteam Ltd.'s projections and estimates.

Private credit returns as of late have been great, which further enhances the value Apollo Global Management carries. Private credit brings good risk adjusted yields, which institutional investors seek. 

In 2025 many Wall Street equity research and fixed income analysts expect a lively year for mergers and acquisitions, driven mainly by private equity's 'dry powder' investments. The envisaged new leveraged buyouts will again buoy the credit markets as companies undergoing leveraged buyout will issue new high yield debt, which funds like Apollo Global Management will invest in. In addition, the Federal Reserve is expected to continue cutting interest rates, which will support the high yield bonds market.

This will make private credit markets even deeper and liquid which will attract even more money.


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