APO Security Research Hub

The growth outlook for alternative asset managers like Apollo remains resilient despite market volatility and sticky 3.8% inflation impacting the broader rates environment. Credit strategies have emerged as a dominant driver of sector performance, accounting for 60% of the $226 billion in gross inflows recorded in the recent period. While the retail wealth channel faces significant pressure, with private credit sales projected to drop by 50% in the second quarter, institutional demand for infrastructure and digital assets continues to bolster the long-term outlook. Furthermore, the sector is supported by record levels of dry powder totaling $876 billion, providing substantial capital for deployment during market dislocations. Current valuations across the alternative management space represent an attractive entry point for investors, as the group is trading at a 20% discount to historical averages. Ultimately, the research suggests that Apollo’s core competencies in credit and its ability to capture institutional demand remain key anchors despite near-term headwinds in retail fundraising.