Apollo Global Management co-President Scott Kleinman expects private equity deal activity to continue at a slower pace, even as investors anticipate Federal Reserve rate cuts could revive the market, according to a report by Bloomberg.
Speaking to Bloomberg TV, Kleinman said the exit environment is not necessarily difficult, but assets purchased at high prices during the near-zero interest rate era may not yield attractive returns today.
He added that while rates are starting to ease, the “higher for longer” environment will likely keep valuations constrained and deal volumes muted in the near term.
