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

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.

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)

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)

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 |

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.

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.