Top Apollo executive sounds off on ‘arrogance’ in private markets

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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: A senior executive at Apollo Global Management, John Zito, warned of widespread overvaluation in private markets,
• He has stated in previously unreported remarks that “all the marks are wrong”, criticizing what he described as “arrogance” across the private equity and private credit sectors.

🔭 The context: Zito, co-president of Apollo’s asset-management arm, made the comments during a client event arranged by UBS, amid growing investor concerns about liquidity pressures and declining returns in private credit funds
• The remarks contrasted with the more cautious public messaging from private-market firms seeking to reassure investors as withdrawals increase

🌍 Why it matters for the planet: Private equity and private credit have become major sources of financing for energy, infrastructure and climate-transition projects
• If asset valuations reset or funding tightens, it could influence the pace and cost of capital for large-scale investments in decarbonization and sustainable infrastructure

⏭️ What’s next: Investors are closely watching potential stress in the private-credit market, particularly among loans to mid-sized companies
• Any correction in valuations or rise in defaults could reshape capital flows across private markets and affect fundraising for future investment vehicles

💬 One quote: “I literally think all the marks are wrong.” — John Zito, co-president of Apollo’s asset-management arm

📈 One stat: Zito suggested that some private-credit loans to mid-sized software firms might recover only 20–40 cents on the dollar in a downturn

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