Apollo Global Management Inc. said that high-net-worth clients and retail investors in Asia will become the biggest growth opportunities in the coming years. Matthew Michelini, the head of Asia-Pacific business, pointed out that by 2030, Australia’s pension system will become the second largest in the world, and the 7.4 trillion Australian dollars in cash deposits held by Japanese depositors will also be a key target. Apollo plans to expand its teams in Hong Kong, Singapore and Japan to more effectively connect with retail investors.
In recent years, Apollo has raised 35 billion US dollars in Asia through insurance companies and institutions, with Japan being the main source. Its reinsurance business helps insurance companies transfer risks by managing life insurance and annuity policies, and most of the funds flow to private credit business. Michelini said that due to the uncertainty of trade policies, Asian investors are shifting some of their US investments to India, Australia and Southeast Asia, driving up the demand for private credit.
Michelini emphasized that private credit in Asia has a premium of 150 to 200 basis points over public debt, and the spread between the Australian and Southeast Asian markets is comparable to that of the United States and Europe. In addition, the restructuring of global supply chains and the financing demands of large-scale infrastructure projects have provided new opportunities for private credit, especially in markets with long-term capital shortages such as Australia and Japan.
Related Topic:
