Prediction Not checkable as stated
Kleinman: Semi-liquid PE will fail to deliver a good client experience
“It's not going to give the client, i.e. The wealth client, a good experience in the long run.”
Insight
Kleinman: Asset management growth is constrained by origination, not capital
“The whole industry thinks in terms of capital formation. I just got to raise more capital and I'll deploy it. We flipped that on its head and said, no, the limiter of our growth is not capital. We've never had a situation where we've had good ideas and haven't…”
Prediction Not checkable as stated
Kleinman: Asset management will stop segmenting by public versus private in 5-10 years
“And the way you cut the asset management industry in five or 10 years, I'm not sure is going to be based on public and private. It'll be based on other risk categories, but that's not a good definition of what's risky and what's not risky anymore. I think you'…”
Disclosure
Kleinman: Apollo Holds Lower Leverage and Fewer PIK Loans Than Competitors
“Our private equity portfolio is more defensive than most of our competitors. Our credit portfolio is for sure much higher rated, much less leverage, much less portfolio leverage. Our private lending portfolio has a fraction of the pick loans or other aggressiv…”
Insight
Kleinman: Private equity cannot scale like credit due to concentrated dealmaking
“There's only so much you can deploy in private equity. When you are making six or eight consequential decisions a year, there's only so much capital you can deploy on that basis. In the credit business, instead of buying a hundred million of this particular bo…”
Prediction Not checkable as stated
Kleinman: Weak AI ROIs will weigh on markets and hit levered players
“If those ROIs don't come to pass, I don't think the whole system is going bankrupt, but that clearly will have a weighing effect on the markets. Certainly the biggest hyperscalers will be okay, but that cascades down to many, many players, some of whom have go…”
Assertion Partly supported
Kleinman: AI CapEx represents at least 2% of GDP growth
“That's representing at least a couple percent of GDP growth right now. That's driving massive investment in infrastructure and chip manufacturing and energy and all of these things.”
Disclosure
Kleinman: Apollo decided against launching semi-liquid private equity products
“We don't think it's a great product. So we have decided not to bring a semi-liquid private equity product. We have a variety of semi-liquid other products, but for private equity, we've made the decision, this isn't the right Product.”
Prediction Held up
Kleinman: Mutual Funds and ETFs Will Blend Private Assets into Products
“Traditional asset managers, i.e. Mutual funds, ETFs, they're gonna start injecting some amount of private assets blended into their products.”
Assertion Contradicted
Kleinman: Apollo was first to house private credit and PE together
“We were the first folks to come out of the GFC saying, well, we should have private credit business and a private equity business under the same roof.”
Assertion Supported
Kleinman: Asset-backed lending yields 200 bps premium over corporate credit
“It's a different business, and you're getting paid a premium for that type of specialization to the tune of a couple hundred basis points over the single A, double A, triple B corporate cost of capital that company is.”
Disclosure
Kleinman: Apollo bought Bridge Investment Group to expand real estate
“Obviously, with rates moving and cap rates moving, we, this year, went out and bought a fifty billion dollar real estate Asset manager called Bridge, and that's now an area we're starting to redirect and lean into because the relative pricing has repriced ther…”
Insight
Kleinman: Private equity firm mergers create more dissynergies than synergies
“The hardest type would be for one PE firm to go buy another PE firm. There is more dis synergies than there's actual synergies and something like that.”
Assertion Not checkable as stated
Kleinman: The Market Has Not Had a Real Credit Cycle Since 2009
“We haven't had a real credit cycle since 2009.”
Disclosure
Kleinman: Apollo will roll out lower-leverage active equity strategies over next 5 years
“My only point is there are lots of ways that over the next five years, we will begin to bring other forms of equity to investors that isn't necessarily private equity, i.e. Levered equity buyout type capital that gives Premium to the longterm S&P with more sta…”
Insight
Kleinman: The best risk-return in a company is often debt, not equity
“It was a pretty novel concept that sometimes the best risk return in a company is not the equity. It could be the preferred. It could be the debt of a company. So be prepared to express that.”
Insight
Kleinman: Apollo's aggressive reputation could not scale with broader financial ambitions
“It was around that timeframe where it started becoming clear if we wanted to keep growing and keep being a bigger part of the financial system, that wasn't going to work. You can only do that for so much.”
Assertion Not checkable as stated
Kleinman: Post-GFC alternatives industry completely ignored investment-grade credit
“We had to figure out how do we earn excess return in AA, in single A, in triple B, which no one in the alternatives industry was thinking about at the time. That left the space wide open for us to be able to go do that.”
Insight
Kleinman: Global CapEx Wave Forces Corporates to Seek Alternative Financing
“We're in a point in the CapEx cycle like we've never seen, certainly in my career, where companies have to spend so much money between the energy transition, the digital transformation, the re-globalization of moving assets around given the new world order. Co…”
Disclosure
Kleinman: Apollo Can Deploy Up to $20B in a Single Financing Deal
“And because of our scale, we're not showing up at 205 hundred million at a time. We can show up at three, five, 10, twenty billion dollars at a clip and speak for that level of capital to be able to do that with big IG counterparties.”
Assertion Open · timeframe Dec 2026
Kleinman: Apollo reaches $1T AUM with half from captive insurance capital
“We'll end the year pro forma for an acquisition right around a trillion dollars. Half of that, five hundred billion of that is our own captive insurance capital. One out of every two dollars we invest is for our own balance sheet, our own company.”
Assertion Not checkable as stated
Kleinman: Apollo is the largest investor in every product offering
“We now are the largest investor in basically every product offering we offer out.”
Disclosure
Kleinman: Apollo will not raise fund capital without balance sheet participation
“But if we don't have a home on the Apollo balance sheet that thinks that's an interesting risk return, I'm not going to go out and raise that money because that may be right for the asset management business, but that's not right for what we're trying to do in…”
Disclosure
Kleinman: Apollo held virtually no high yield debt in late 2021
“If you looked at our entire footprint at the time, we had virtually no high yield on the Apollo platform.”
