Apollo’s Zelter Says Private Credit Concerns Are Just Growing Pains

- Defends the private credit asset class, framing current market concerns as "growing pains" analogous to the early skepticism of the high-yield (junk) bond market in the early 1990s. - Argues the broader, more important story is the "public-private convergence," where portfolios increasingly blend public and private holdings, citing Berkshire Hathaway as a key example (half its portfolio in private companies). - Believes fixation on specific vehicles like BDCs (Business Development Companies) misses the larger plot of robust US economic growth and a deepening, institutionalized financing environment. - Attributes the strength of the US financial system to economic growth since 2009, a robust banking sector, and the proliferation of securitization and institutional capital pushing risk out of banks. - Uses SpaceX as an illustrative case: while mutual funds may have inconsistent marking methodologies for such private holdings, that shouldn't deter investment in a "great American company." - Implies a long-term, structural demand driver for private credit and yield products: global demographic trends creating a need for "robust compounding yield." - Suggests media coverage focuses on sensational headlines rather than the methodical growth of the US economy and the evolution of its capital markets.