Bloomberg Talks: Apollo Global Management President Jim Zelter (Souta) Talks Asset Management
Date: January 8, 2026
Host: Bloomberg (John)
Guest: Jim Souta, President, Apollo Global Management
Episode Overview
This episode features a wide-ranging interview with Jim Souta, President of Apollo Global Management, unpacking the state of asset management in a complex, risk-laden macroeconomic environment. Souta offers keen insights into Apollo’s current risk posture, the resilience of the U.S. economy, opportunities abroad, record bond issuance, debates on institutional investments in housing, and the evolving landscape of private and public capital markets.
Key Discussion Points & Insights
1. Apollo’s Conservative Investment Approach
- Heightened Risk Standards:
- Apollo is increasingly cautious, raising the bar for investment approval amid persistent macro uncertainties, including geopolitical tensions and inflation worries.
- Quote:
“The gauntlet for approving investments at Apollo has gotten higher and higher ... you've got a lot of great things going on … [but] the rough where there's lots of challenges between geopolitics, between the concern about inflation, between the concern about the return of invested capital ... have certainly grown in stature.”
— Jim Souta, 00:34 - Golf Analogy:
- The investing environment is compared to the U.S. Open in golf: “tight fairways and really punitive rough.” Success requires discipline and precision.
- Quote:
“The U.S. Open is known for tight fairways and really punitive rough. And if you keep in the fairway, you're going to be a great victor and you're going to have great success.”
— Jim Souta, 03:22
2. Recent Investment Activity & Focus
- Strategic Transactions:
- Despite risk aversion, Apollo is deploying capital into large, well-structured deals emphasizing downside protection:
- Acquisition with Brad Jacobs in building products.
- Capital structure simplification with Russell Investments.
- $5B Nvidia chip sale-leaseback with Baylor XI.
- Quote:
“All great companies ... we're leaning into larger companies that are part of the global industrial renaissance ... really well structured. Downside risk.”
— Jim Souta, 01:33-02:31
- Despite risk aversion, Apollo is deploying capital into large, well-structured deals emphasizing downside protection:
3. International Diversification
- Europe & Major Economies:
- Apollo sees structural capital needs in Europe (especially Germany, UK), Japan, and Australia, tied to government retirement solutions and the global industrial renaissance.
- Avoids emerging markets in favor of G7/larger economies.
- Quote:
“We're really a G7 and larger economy investor.”
— Jim Souta, 04:11-05:07
4. Surge in Global Bond Issuance
- Explaining the Spike:
- Corporate and government bond issuance is at record highs; not just a fleeting window but part of persistent trends supporting supply/demand dynamics, especially with investors seeking long-duration yield.
- IPO calendar and oil price trajectories are crucial variables for 2026.
- Quote:
“With real rates and real yields fairly high on a historic basis ... it's a pretty powerful mix of supply and demand ... one of the big questions is does the equity new issue IPO calendar actually come to fruition?”
— Jim Souta, 05:29-07:23
5. Resilience & Evolution of the U.S. Economy
- Credit Cycle Durability:
- The diversified U.S. funding landscape, strong banking system, and securitization dilute historic transmission mechanisms of Fed policy.
- The nature of mortgages (predominantly long-term fixed) insulates the U.S. housing market compared to places like the UK.
- Quote:
“It's a lot harder to push over this machine than it had been in the past. The transmission mechanism of the Fed that used to be instantaneous is not what it used to be ... It's not your father's economy.”
— Jim Souta, 07:52-09:33
6. Institutional Investment in Housing
- Policy Spotlight:
- Commentary on President Trump's proposal to ban institutional home purchases as housing affordability soars onto the political agenda.
- Apollo has not been a major player in direct single-family rental investments, preferring to focus on supply-side solutions (development, home building products).
- Skeptical about blunt policy tools; prefers nuanced, “strategic helping” approaches.
- Quotes:
“As a matter of course, we are not [big in institutional homeownership].”
— Jim Souta, 10:31
“... I think there's broader policy strategies that can, that can help out to solve those problems.”
— Jim Souta, 11:55
7. “Strategic Helping” and Capital Deployment
- Targeted Solutions:
- Collaborating on defense, land banking, and industrial reshoring (e.g., U.S. chip manufacturing).
- Recognizes public/private partnerships and large-scale investment are essential for social and economic challenges.
- Quote:
“We're in dialogues ... on a variety of funding, the choke points in the defense initiatives. ... getting chip building back in the U.S. those are all the things that we think are good for us long term.”
— Jim Souta, 12:56
8. Meeting Massive Capital Needs in Tech & AI
- Capital for the Hyperscalers:
- The six largest hyperscalers will need $5-7 trillion over the next 5-6 years, mainly funded by cash flow, public markets, structured finance, with a $1-1.5T gap yet to be addressed.
- Concerns about whether the returns on capital invested in AI/data infrastructure will materialize.
- Quote:
“When you identify the gaps, it's another trillion of the 5 to 7 trillion ... it's definitely going to strain and have an impact ... But ... I'd love to know what the return on this capex of broad, broad AI data centers is.”
— Jim Souta, 13:43-15:10
9. The State and Future of Private Markets
- Pressure to Go Public:
- Private market deals (especially LBOs) are increasingly funded via private credit, but liquidity demands may push more companies to seek public exits.
- Endowments/foundations/employee stakeholders are seeking more liquidity, although it's possible to remain private longer than before.
- Quotes:
“... there is a greater demand for liquidity from a variety of investors, whether it's endowments or foundations that are knocking at that door.”
— Jim Souta, 16:35
“Depending on your constituents ... who might need liquidity, that's a challenge you're going to have to confront.”
— Jim Souta, 16:35-17:02
Notable Quotes & Memorable Moments
-
On Macro Humility:
“There's a great deal of humility about the macro view ... The US economy really was massively resilient.” — Jim Souta, 01:33
-
On Market Structure:
“The strength, the breadth of market structure, how companies finance, the role of banking, the ability for Fed ... It's not your father's economy.” — Jim Souta, 09:15
-
On Policy & Social Good:
“We want to be on the strategic helping side rather than the debate about, about policy.” — Jim Souta, 12:10
-
On AI Buildout:
“I'd love to know ... what the return on this capex of broad, broad AI data centers is.” — Jim Souta, 15:10
Key Timestamps for Reference
- 00:34 — Apollo’s heightened investment standards & golf analogy
- 01:33–02:31 — Recent deals; industrial renaissance focus
- 03:22 — U.S. Open investing analogy
- 04:11-05:07 — International strategy; focus on G7 economies
- 05:21–07:23 — Record bond issuance; market optimism and risks
- 07:52–09:33 — U.S. economic resilience and market structure
- 10:31–11:55 — Apollo’s stance on institutional housing investments and policy response
- 12:56 — Strategic helping & capital allocation towards national priorities
- 13:43–15:10 — AI/hyperscaler capital needs, public/private market dynamics
- 16:35–17:02 — Pressures for liquidity in the private markets
Summing Up
This episode is a snapshot of how leading asset management voices like Jim Souta are navigating risk, seizing opportunity, and adapting to an economic and geopolitical era marked by both tailwinds and uncertainties. It provides actionable perspective for institutional and sophisticated investors, emphasizing prudent risk-taking, the necessity of strategic partnerships, and anticipation of structural shifts in both public and private capital formation.