Apollo's Jim Zelter Talks Iran War, Private Credit Concerns

Summary

Bloomberg Talks

Episode: Apollo's Jim Zelter Talks Iran War, Private Credit Concerns

Date: April 2, 2026
Host: John Yahara (Bloomberg)
Guest: Jim Zelter, Co-President of Apollo Global Management

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Episode Overview

This episode features an interview with Jim Zelter, Co-President of Apollo Global Management, who shares his perspectives on escalating military conflict in Iran and the state of the private credit industry. Zelter addresses recent critical media coverage, discusses broader trends in banking and investment, and explains Apollo’s strategy in a shifting financial landscape. The conversation balances geopolitical volatility with insights into market resilience, private asset growth, and innovation within finance.

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Key Discussion Points & Insights

1. Geopolitical Context: Iran Conflict & Global Markets

• [00:40–01:36] News update on the Iran war: President Trump announces the US is “very close to completing its military objectives,” promises more action over the next weeks, and urges other countries to take responsibility for reopening the Strait of Hormuz. Heightened tensions spill into financial world safety, with bomb threats at Goldman Sachs’ Paris HQ (01:36).
  • Notable quote:

    "The US does not need the oil exported through the critical waterway and that the nations who depend on it should, quote, go in and take it." – News Anchor (00:40)

2. State of Private Credit: Growth, Misperceptions, and Resilience

• [05:06–06:10] Jim Zelter expresses broad concerns as an investor given current market volatility, pushing the discussion beyond the “narrow corner” of private credit.
  • Notable quote:

    "It's not about the little narrow corner of the world that you guys call private credit. It's much broader." – Jim Zelter (05:07)

• Zelter draws parallels to early skepticism of the high-yield (junk bond) market in the 1990s, viewing current criticism as a sign of asset class maturation.
  • Notable quote:

    "Back when Drexel went ... there was concerns about the high yield asset class—junk bonds, you know, asset class won't survive. ... This is just growing pains." – Jim Zelter (05:23)

3. Media Criticism & Asset Manager Sentiment

• [06:10–09:14] Discussion turns to frustration and media scrutiny of private credit, with coverage focusing narrowly on BDCs (Business Development Companies) rather than the bigger industry context.
  • Notable quote:

    "We've sort of lost the plot a little bit ... the methodical robust growth of the US economy, the role of the public, private convergence, the strength and breadth of our financing. That's really the bigger story here." – Jim Zelter (08:41)

• Zelter emphasizes the importance of a robust financial system, highlighting the US's leadership in economic growth, banking, venture capital, and innovation. He defends the current valuation processes even as markets and asset classes evolve.

4. Public & Private Markets: Evolution and Integration

• Zelter points to the convergence of public and private investments, giving examples like mutual funds investing in SpaceX and referencing Berkshire Hathaway's significant exposure to private companies.
• He discusses inconsistencies in the valuation (“marking process”) of certain private assets, but frames them as necessary growing pains for an increasingly sophisticated industry.

5. Market Opportunism Amid Dislocation

• [09:14–10:49] The interviewer asks whether recent volatility and discounted assets suggest Apollo should be more aggressive.
• Zelter asserts that, despite headlines, not many “fire sales” or dramatic dislocations are actually occurring. Apollo, with $125 billion in deployable capital, stands ready for opportunity, but the underlying market remains strong and resilient.
  • Notable quote:

    "We have a lot of liquidity. We've got $125 billion of capital and liquidity ready to put in the market in our platform. But ... we really have not seen the vast majority of assets coming to marketplace that people have talked about." – Jim Zelter (10:40)

6. Location & Talent: Apollo’s Long-Term Vision

• [10:49–11:19] On whether Texas or Florida might be future headquarters, Zelter reaffirms Apollo’s commitment to New York as its home, though also planning growth and innovation centers in other cities.
  • Notable quote:

    "New York is a very dynamic place that always attracts a lot of best and the brightest of young folks." – Jim Zelter (11:01)

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Memorable Quotes & Moments

• On private credit skepticism:

  "I think this is just growing pains... Investors need robust compounding yield. I'd be concerned, but I see the great benefit of this product." – Jim Zelter (05:23)

• On media's narrow focus:

  “We've sort of lost the plot a little bit ... the bigger story here is the methodical robust growth of the US economy, the role of the public, private convergence." – Jim Zelter (08:41)

• On market opportunity amid crisis:

  "Whenever there's been any kind of dislocation, we've been fortunate enough ... to end up in a better spot." – Jim Zelter (09:38)

• On Apollo’s geographic ambitions:

  "We want to make sure we have a spot to create growth and innovation and we'll see what the process leads us to." – Jim Zelter (11:13)

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Notable Segment Timestamps

| Time | Segment Description | |-----------|-------------------------------------------------------| | 00:40–01:36 | News update: Iran conflict, US policy, market impact | | 05:06 | Zelter voices macro concerns and history of skepticism| | 06:10 | Response to frustration and media scrutiny | | 08:41 | Discussion on market structure and convergence | | 09:14 | Dialogue on market dislocation and Apollo’s approach | | 10:49 | Apollo’s HQ location and talent strategy |

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Episode Tone

The discussion is candid but confident. Zelter employs a measured, historical perspective to counter criticism, while the host is probing but deferential. There are moments of levity (the Texas or Florida question), but overall the tone remains serious, with an undercurrent of optimism and resilience about markets and Apollo’s positioning.

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In Summary

Jim Zelter, defending not just the private credit sector but broader US financial innovation, urges a long-term, holistic view in the face of alarmist headlines and market fears. He asserts Apollo's preparedness to seize opportunity—should it arise—while maintaining confidence in the strength of markets and the ongoing evolution of public-private capital. The episode offers both reassurance and a call for nuanced context in assessing modern financial markets.

Transcript

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[John Yahara]

Let's get you an update on stories worldwide with your Bloomberg brief. Yahira has more. Hi.

[News Anchor]

Hi, John. In a primetime address, President Trump saying the US Is very close to completing its military objectives in Iran and vowing to hit the nation, quote, extremely hard over the next two to three weeks. Still, the speech lacked new announcements and most notably, a precise timeline for an exit. President Trump also saying in the address other countries need to take the lead on reopening the strait to Hormuz. The president saying the US does not need the oil exported through the critical waterway and that the nations who depend on it should, quote, go in and take it. And the headquarters of Goldman Sachs in Paris was placed under police surveillance last night following bomb threats believed to be from an Iranian group. The threats come just days after a bombing attempt was foiled near the bank of America in the French capital city, telling its Paris and Frankfurt's employees to work remotely as a precaution. That's a Bloomberg brief.

[John Yahara]

John yahara, thank you. They are concerning headlines. We'll keep track of that story for you throughout this morning. Up next on the program, turning up the pressure on Iran.

[President Trump]

We are on track to complete all of America's military objectives shortly, very shortly. We are going to hit them extremely hard over the next two to three weeks. When this conflict is over, the strait will open up, naturally.

[John Yahara]

Up next, we'll catch up with Bloomberg's Tyler Kendall. We'll have more from Jim Zaltzer. Brahma is going to talk to him the commercial break. By the time that's finished, he'll come back a different man from New York City this morning. Good morning,

[Jim Zaltzer]

Sam. Morning.

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Good morning. This is Bloomberg Surveillance.

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Welcome to Bloomberg this weekend. I'm David.

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I'm Lisa Mateo. And I'm Christine Rafini. We're tracking breaking news today from Wall street to Washington. Let's start overseas sector is really propelling this deal forward.

[Jim Zaltzer]

Yeah. The hope is this will open up new markets and provide some additional liquidity.

[News Anchor]

Of course, now they're going to have competitors. We got a big week coming up in politics.

[Interviewer]

Earnings season is underway.

[Jim Zaltzer]

We're going to get some key reports.

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Everything you need to know before the markets open on Monday.

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[John Yahara]

I can tell you it didn't work. In case you were wondering. I tried.

[News Anchor]

He's more fired up.

[Interviewer]

You've got some concerns.

[Jim Zaltzer]

Yes, I have some concerns. I'm an investor in the world. I have a lot of concerns. It's not about the little narrow. It's not about the little narrow corner of the world that you guys call private credit. It's much broader.

[John Yahara]

But same round out this morning. Have you been annoyed by the coverage in the last few months?

[Jim Zaltzer]

No, I'm not annoyed by it. I think it reminds me of when I was a young high yield trader in the early 90s and when 1990 when Drexel went when filed and there was concerns about the high yield asset class junk bonds, you know, asset class won't survive. It's a Ponzi scheme. There's no credibility here. And I think that if I look back at that time, it was early days of the high yield market, which is now the high yield market in a legitimate asset class. I think this is just growing pains. And as I go back to my first principles, if investors over 15 years were not actually making money and I see the demographics of the globe right now where investors need robust compounding yield, I'd be concerned. But I see the great benefit of this product.

[John Yahara]

I've since frustration. I've sensed frustration from the asset managers. You have to. I can feel it now. I've got to be honest with you. I can, I can sense the frustration that you've got, I think with some of the coverage over the past few months. What is it about the coverage that's been quite upsetting, the fixation on just bdcs and not the broader asset class? What is it about that's upset you and the team? Maybe.

[Jim Zaltzer]

Well, I got to push back on being upset.

[John Yahara]

Like I can tell you over the last few minutes is felt that way. Okay, maybe not aimed directly at us, but send coverage of your world.

[Jim Zaltzer]

Well, again I think that a lot because of the proliferation of the analysis in every corner of the environment we work in right now. I think that's why I had my message about taking a step back. You know, I do think when you look at the growth of the US economy since 09, the result has been we have the most robust banking system in the world. We have the leading banks that are well run organizations that have done an amazing job and the return on equity and their impact in the US economy is profound. You also have a backdrop of economic growth that is unmatched around the globe. And I don't think it's any surprise that the advent of pushing out the risk in the banking system, the benefit of securitization, the benefit of CLOs, the benefit of all the things that institutions have helped out with that has result in a much broader, deeper base financing environment. We financed a lot of growth, we financed amazing tech growth. Growth. Our VC marketplace is the most robust in the world. And so I think that, you know, many mutual funds today, I'll give you a little analysis. Many mutual funds today were very, very thought, forward thinking and were able to buy Space X several years ago. And so Space X is part of their portfolio, a small portion. There's probably not a clearly defined marking process on how they all mark their space as Space X Equity because of employee sales, whether it's monthly, quarterly, whatever it is. But just because the marking process may be inconsistent, that shouldn't stop them from buying a great American company that they're going to do very, very well on. And so that's why I think we're sort of missing the plot about. I've talked on this show in the past about Berkshire Hathaway, about half of their portfolio being in private companies. And so, so I do think the whole idea of the public private convergence, the broader portfolio approach, where the, where the market's going in terms of these massive capex, that's where I think we've, we sort of lost the plot a little bit. And again, I'm not in the newspaper business. But I do think that I know what sells headlines and I think the methodical robust growth of the US economy, the role of the public, private convergence, the strength and breadth of our financing. That's really the bigger story here.

[Interviewer]

And clearly there are people who want to belittle or demean this industry because they feel like either they've been left behind or they want to suppress prices so they can get in and buy. And I just wonder from your perspective, are you seeing this as an opportunity to get more aggressive considering that there have been some discounted assets, there are some weaker hands and a lot of people are worried, including myself.

[Jim Zaltzer]

Well, unfortunately, the, the. I would say two things. In my 41 years in the industry, in the 20 years at Apollo, whenever there's been any kind of dislocation, we've been fortunate enough between the breadth and the discipline and the capital, we have to end up in a better spot. That's number one. The second is, I would say is the headlines have been much more profound and loud than the activity. There really isn't a lot of assets that are for sale that have widened out dramatically. The high grade indexes is where it's been. The high yield index has really been pretty tight. There's been a variety of financings done. Look what J.P. morgan did on EA Sports. They did a massive IAG crossover financing. The high yield and loan markets have been pretty strong. So there's been a great excitement about putting this massive amount of capital to work. That's the business we're in. We really have not seen the vast majority of of assets coming to marketplace that people have talked about. So you know, we have a lot of liquidity. We've got 125 billion of capital and liquidity ready to put in the market in our platform. But I'm sure we'll be active and I'll talk about it on the several times I'm back here the rest of the year.

[John Yahara]

Final question.

[Jim Zaltzer]

Yes, sir.

[John Yahara]

Texas or Florida?

[Jim Zaltzer]

You know, we want to, we love New York. New York has been our home for a long time and we're going to maintain a massive presence in New York.

[John Yahara]

So loved by New York.

[Jim Zaltzer]

You know, New York is a very dynamic place that always attract a lot of best and the brightest of young folks. But we want to make sure, as we think about our company, between New York, Des Moines, El Segundo, we want to make sure we have a spot to create growth and innovation and we'll see what the process leads us to.

[John Yahara]

Let's go for a walk. Together.

[Jim Zaltzer]

Sounds great.

[John Yahara]

In a moment. Jim, sounds to good to see us. I believe. Thank you. Jim sounds up Apollo Global Management. Jim, this was fun. We appreciate your time.

[Jim Zaltzer]

Always appreciate.

[John Yahara]

Thank you very much. A stern defense of his asset class, no doubt expected by many.

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