Apollo executives criticize the "arrogance" in the private equity market

As funds under management face capital outflows, senior executives of large private credit institutions are seeking to downplay this issue. They are frequently appearing on television programs, attempting to calm the anxiety related to the industry through carefully worded statements. However, at the end of last month, in a previously unreported discussion arranged by Credit Suisse for some clients, John Zito, Co-President of the asset management department of private credit giant Apollo Global Management, was more outspoken. According to media reports of the recorded remarks, Zito criticized the "arrogance" of the private credit market. He predicted that, in terms of private credit, the loans provided to ordinary small and medium software companies may ultimately only be able to recover 20% to 40% of the funds. He also said that Federal Reserve Chairman Jerome Powell is provoking U.S. President Trump with inflation rhetoric. Like many of his peers, Zito also detailed why he believes his company's private credit business is built on a solid foundation. Credit Suisse declined to comment.