Rowan says the investment grade private credit market is $38 trillion, making the total private credit opportunity $40 trillion.
“The investment grade private credit market, which is being driven by the global industrial renaissance, is a $38,000,000,000,000 market. Therefore, the total opportunity in private credit is some $40,000,000,000,000”
Rowan says Apollo will provide daily pricing for all corporate investment grade assets by June 30.
“For our platform, which is the largest private credit platform in the world, by sixthirty, our investors will have daily pricing for all corporate investment grade fixed income assets.”
Rowan predicts five tech companies will be among ten largest investment-grade issuers within five years.
“The 10 largest issuers of IG five years from now, if everything holds, are gonna be five large tech companies and five large banks.”
Rowan says Apollo originated over $300 billion in new investments last year, with 80% being investment grade.
“So if you think last year, we originated a little over $300,000,000,000 of new investments, mostly credit. 80% of that was investment grade. I assure you no one is complaining about the lack of buccaneering.”
Rowan reports Apollo originated over $300 billion in new investments last year, with 80% being investment grade credit.
“So if you think last year, we originated a little over $300,000,000,000 of new investments, mostly credit. 80% of that was investment grade. I assure you, no one is complaining about the lack of buccaneering.”
Rowan challenges the forty-year assumption that private markets are inherently riskier than public markets.
“The disconnect in people's minds of private and investment grade is actually funny to watch sometimes, because we've grown up with forty years of thinking that private is risky and public is safe.”
Rowan corrects misconception that private credit means levered lending when most is actually investment grade.
“And the reality is most private credit is investment grade, And most of the credit in the financial system that is private, banks, insurers, pension funds, is investment grade.”
Rowan says most private credit is investment grade, contrary to financial press focus on levered lending.
“In much of the financial press, private credit means levered lending, a below investment grade deal related activity.”
Rowan notes investment grade bonds take five days to sell, predicting poor trading in risk-off moments.
“Takes five days today to sell an investment grade corporate bond. We should expect in every risk off moment public credit to trade poorly.”
Rowan says Apollo has done $100 billion in investment grade private deals since AB InBev.
“A $100,000,000,000 later we're still doing investment grade private deals. And I I see nothing but a long line of interesting borrowers and interesting situations”