Apollo CEO warns private credit industry will face reshuffling, default rates are rising

2026-03-04 03:34:03

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Investing.com - Apollo Global Management Inc. CEO Marc Rowan warns that as the industry faces rising default rates among software company loans, private credit firms will undergo a reshuffle.

In recent weeks, Business Development Companies (BDCs) have experienced a wave of redemptions due to investor concerns. Rowan pointed out that consecutive bank loan defaults are an example of broader issues in the credit market.

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“This will be a reshuffle — I don’t think this is a short-term phenomenon,” Rowan said in an interview at the Bloomberg Investment Summit in New York on Tuesday. “It’s predictable. It’s foreseeable. All you can do is be a good underwriter, a good risk manager, and do fewer stupid things.”

In recent months, large private credit funds targeting retail investors, such as Blackstone Inc., Ares Management Corp., and Blue Owl Capital Inc., have seen a surge in investor redemption requests.

Apollo’s stock price has fallen approximately 30% so far in 2025.

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