Apollo Global Sees AI Infrastructure Financing Growth Amid Higher-for-Longer Interest Rates
Apollo Global Management anticipates that higher interest rates will persist for an extended period, driven by strong consumer spending and investment in artificial intelligence infrastructure. According to Scott Kleinman, co-president of asset management at Apollo, the firm's chief economist estimates a low probability—between 10% and 20%—of a recession over the next year despite ongoing geopolitical risks and energy price volatility. Apollo is focusing on AI as a large-scale financing opportunity rather than betting directly on specific technology winners. The company provides structured capital to investment-grade firms in sectors such as digital infrastructure, energy, logistics, and defense. Apollo has seen strong institutional fundraising success, including a $12 billion first close for its Fund XI. The firm also highlighted the growing need for diversified financing across public equity, bonds, and private capital due to the scale of AI-related investments. Apollo is expanding in Europe as local companies seek alternative funding sources amid weaker domestic capital markets.
Tickers: $APO
Topics: AI infrastructure financing Apollo Global Management interest rates private equity