Executives from Blackstone and Apollo Global Management have sought to counter growing market anxiety around the $1.8tn private credit sector, arguing that fears reflected in recent headlines overstate actual risks., according to a report by Bloomberg.
Speaking at the Asia Pacific Financial and Innovation Symposium in Melbourne, Blackstone co-CIO Kenneth Caplan highlighted that the firm’s portfolio shows “very low levels of default,” emphasising a disconnect between media coverage and portfolio performance.
Apollo President Jim Zelter echoed these comments, framing dramatic reporting as a source of opportunity rather than evidence of systemic risk. He noted that spreads have not widened in line with the negative headlines and suggested that some retail investors may misunderstand the liquidity profile of certain private credit products, contributing to the recent spike in redemption requests. Both Apollo and Ares Management recently implemented restrictions on withdrawals from some funds aimed at retail clients.
Australian institutional investors largely supported this cautious optimism. David Neal, CEO of IFM Investors, described recent volatility as a reflection of retail participation rather than fundamental stress in the asset class, while Hostplus investment chief Sam Sicilia noted the pension fund’s long-standing confidence in private credit managers. Macquarie Group CEO Shemara Wikramanayake added that fears around AI-driven disruption in software markets – dubbed the “SaaSpocalypse” – have spurred redemption activity but do not reflect credit problems, with her firm continuing to find deep lending opportunities.
