June 12, 2024
Flexibility Is Key: Why Invest Opportunistically in Private Credit
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Capital markets have, in our view, entered a new regime of higher volatility that can create attractive opportunities for investors who add flexibility to private credit portfolios. An opportunistic approach can lead to more diversified portfolios and higher risk-adjusted returns. We see attractive opportunities in private corporate credit, asset-backed finance, and dislocated credit.
KEY TAKEAWAYS:
- Capital markets have, in our view, entered a new regime of higher volatility that, when properly managed, can create attractive opportunities for investors who are open to adding flexibility to private credit portfolios.
- A flexible, relative-value based mandate can allow investors to allocate dynamically across the credit spectrum, capitalizing on opportunities that arise during different market regimes, especially periods of dislocation.
- An opportunistic approach can lead to more diversified portfolios and, ultimately, potential higher risk-adjusted returns. In today’s environment, we see attractive opportunities to allocate among private corporate credit, asset-backed finance (ABF), and dislocated credit.
- We see investors deploying flexible strategies alongside private credit, as a multi-asset class strategy, or as an “opportunistic” sleeve of credit portfolios.
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The information herein is provided for educational purposes only and should not be construed as financial or investment advice, nor should any information in this document be relied on when making an investment decision. Opinions and views expressed reflect the current opinions and views of the authors and Apollo Analysts as of the date hereof and are subject to change. Please see the end of this document for important disclosure information.
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This presentation is for educational purposes only and should not be treated as research. This presentation may not be distributed, transmitted or otherwise communicated to others, in whole or in part, without the express written consent of Apollo Global Management, Inc. (together with its subsidiaries, “Apollo”).
The views and opinions expressed in this presentation are the views and opinions of the author(s) of the White Paper. They do not necessarily reflect the views and opinions of Apollo and are subject to change at any time without notice. Further, Apollo and its affiliates may have positions (long or short) or engage in securities transactions that are not consistent with the information and views expressed in this presentation. There can be no assurance that an investment strategy will be successful. Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment which may differ materially, and should not be relied upon as such. Target allocations contained herein are subject to change. There is no assurance that the target allocations will be achieved, and actual allocations may be significantly different than that shown here. This presentation does not constitute an offer of any service or product of Apollo. It is not an invitation by or on behalf of Apollo to any person to buy or sell any security or to adopt any investment strategy, and shall not form the basis of, nor may it accompany nor form part of, any right or contract to buy or sell any security or to adopt any investment strategy. Nothing herein should be taken as investment advice or a recommendation to enter into any transaction.
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