Apollo Global Management president Jim Zelter has underlined the importance of collaboration with banks as private credit managers move deeper into financing investment-grade corporates, according to a report by Bloomberg.
“The future of IG private credit is really in partnership with the banks — no doubt about it,” Zelter told Bloomberg TV, noting that Apollo has struck 12 origination tie-ups, including with BNP Paribas, Citi and Standard Chartered, alongside a number of undisclosed arrangements.
Traditionally the preserve of banks, investment-grade lending is increasingly attracting private credit managers as they seek to expand beyond leveraged borrowers. Apollo has previously suggested the market could grow into a $40tn opportunity, driven by demand for alternative sources of capital.
Partnerships allow banks to retain a role in structuring and fee generation, while shifting some of the funding burden to private credit funds. Selter highlighted that a bank might have appetite for more senior positions or shorter tenors than private credit lenders.
Europe is a particular focus, especially Germany, where delayed capex in sectors such as energy transition and data centres has created opportunities for long-term private debt solutions.
Apollo’s credit platform managed $690bn across public and private markets as of 30 June.
