Scott Kleinman – Apollo's Integrated Alternatives Platform

**Scott Kleinman** (0:00)
As the whole financial system started coming unglued, banks wouldn't lend to other banks. The ability to obtain liquidity became problematic for companies, for banks, for other things. We were able to approach banks and buy tens of billions of bank debt at a time, at deeply discounted prices. We started accumulating enormous amounts of corporate debt. Not all of it was distressed, it was just the seller was freaking out, the markets were freaking out, so we're buying good paper at discounted prices. At that moment, it became clear to us that the provision of capital to levered companies is the other side of the coin of providing equity in levered situations. Private credit and private equity were two sides of the same coin. We were the first folks to come out of the GFC saying, well, we should have private credit business and private equity business under the same roof.

**Ted Seides** (0:55)
I'm Ted Seides, and this is Capital Allocators. My guest on today's show is Scott Kleinman, the co-president of Apollo Asset Management. Scott joined Apollo in 1996 as its 13th employee and has spent nearly three decades helping build the firm into nearly a trillion dollar alternative asset manager and retirement powerhouse. Our conversation traces Apollo's evolution from a value-oriented private equity boutique to an integrated platform investing across the capital structure at scale. We discussed the firm's core philosophy of excess return per unit of risk, its post-GFC expansion into private credit and retirement services, and why origination and not capital has become the key constraint on its growth. We also explore Scott's transition from dealmaker to firmwide leader, touching on culture, incentives, communication, and governance. We close with Scott's perspective on today's credit environment, the convergence of public and private markets, and the risks and opportunities shaping the next phase of alternative investing. Before we get going, have you noticed that airline travel takes a lot longer these days? Security lines go on as far as the eye can see, and that's even with pre-check clear or the pre-check clear combo. And flights seem to get delayed regularly for no apparent reason. Well, the next time you have even an inkling of a delay, and long before you have to board, de-board, board again, and sit on the tarmac for an hour before you leave, might I suggest you fill that idle time with successive episodes of Capital Allocators? By the time your plane leaves, you'll have gotten through at least two or three amazing episodes, and probably made friends with your equally frustrated neighbor in the seat next to you, who may not have had the benefit of listening until you tell them to. Make a new friend, productively pass the time, and find your way around the world smarter than you started. Thanks for spreading the word. Capital Allocators is brought to you by AlphaSense. AlphaSense connects and accelerates every element of your research process, and I'm excited they chose to be our lead sponsor this year. One of the hardest parts of investing is seeing what's shifting before everyone else does. For decades, only the largest hedge funds could afford extensive channel research programs to spot inflection points before earnings and stay ahead of consensus. But channel checks are no longer the luxury they once were. They've become table stakes. And that's where AlphaSense comes in. AlphaSense is redefining channel research. AlphaSense channel checks deliver a continuously refreshed view of demand, pricing, and competitive dynamics, powered by interviews with operators across the value chain. Thousands of consistent channel conversations every month help investors spot inflection points weeks before they show up in earnings or consensus estimates. And the best part? These proprietary channel checks integrate directly into AlphaSense's research platform, which is trusted by 75% of the world's top hedge funds with access to over 500 million premium sources, from company filings and broker research to news, trade journals, and more than 240,000 expert call transcripts. That context turns raw signal into conviction. The first to see wins, the rest follow. Check it out for yourself at alphasense.com/capital.
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