Apollo's Zito on Fears Facing Private Credit Investors

Apollo's John Zito discusses how the current high volatility regime, driven by the early stage of a technology platform shift, makes credit a safer investment due to its senior position in the capital structure. He also emphasizes the importance of sector-specific factors such as asset intensity, customer control, and capital strength in determining company valuations. - John Zito characterizes the current market as a high volatility regime due to technological platform shifts. - He argues that credit is safer than equity in this environment because it is senior in the capital structure. - Zito notes that services companies will face lower transaction multiples. - He highlights the importance of asset heaviness, customer control, and capital availability for company protection. - There is a potential shift in value from labor to capital, which could be disruptive for investors. - Zito believes the market is not fully acknowledging credit's safety amid the acknowledged volatility.