Apollo CEO warns of shakeout in private credit amid rising defaults

Investing.com -- Apollo Global Management Inc. Chief Executive Officer Marc Rowan warned that a shakeout is coming for private credit firms as the industry faces concerns about rising defaults on loans to software companies.

Business development companies have been hit by redemptions in recent weeks amid investor concerns. Rowan pointed to a string of blow ups in bank loans as an example of broader issues facing credit markets.

"This will be a shakeout — I don't think it is going to be short term," Rowan said in an interview at Bloomberg Invest in New York on Tuesday. "It was foreseeable. It was predictable. And all you can do is have been a good underwriter, a good risk manager, have done a small number of stupid things."

Blackstone Inc., Ares Management Corp. and Blue Owl Capital Inc. have been hit in recent months with a spike in requests from investors to withdraw money from their large private credit funds aimed at individual investors.

Apollo's own shares are down roughly 30% so far in 2026.

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