Apollo's President Discusses AI Infrastructure Financing and Higher Interest Rates
Jim Zelter, president of Apollo Global Management, highlighted the unprecedented scale of capital expenditures in building out artificial intelligence infrastructure. He emphasized that private capital is well-positioned to finance a portion of this growth alongside public funding. Zelter also discussed Apollo's strategic focus on sports and entertainment investments, noting how major franchises like the New York Yankees offer attractive debt financing opportunities due to their unique assets and low loan-to-value ratios compared to other industries. He explained that such investments provide strong margins of safety for lenders while aligning with long-term societal trends. On macroeconomic conditions, Zelter expressed his view that interest rates will remain elevated for an extended period, influencing investment strategies across sectors.
Topics: AI capital expenditure (capex) interest rates private equity