APOApollo Global Management, Inc.

“in February and April, we led 2 AI-related financings totaling more than $8 billion to support a client's acquisition and lease of data center infrastructure to a large investment-grade counterparty. These types of franchise transactions for next-gen AI infrastructure not only highlight our leadership role in providing flexible capital solutions they showcase our principal versus agent mindset that underpins our patient approach.”

“Across the 5 primary hyperscalers, CapEx investment of AI infrastructure is estimated to exceed $800 million this year and almost $1 trillion next year. Against this back up of enormous and historic CapEx spend, we have a variety of touch points with this ecosystem, including data centers, powers and chips and it's clear for us to private capital has a major role to play in this ecosystem.”

“Even this week when you saw the numbers on the hyperscalers, I mentioned, $800 billion and you go through the numbers and the source and uses has been well documented, 1/3 is going to come from cash flow of the company, 1/3 from the IG market and there's a large gap of funding, that's the private credit IG market that we are primarily focused on.”

“sub-2% software exposure, all buckets of credit up 8% to 11% LTM, credit AUM is now vast majority investment grade.”

“Internally, I said on the last call, we are circa 4,000 people in asset management, circa 2,000 people in our retirement services business. I will be surprised if other than on a short-term basis, we end up has more than that. Now I think that jobs are going to change, people are going to change. But the ability of our industry, which, for the first time, is at scale to not be so dependent on legacy systems that we can take advantage of new systems and new ways of doing things, I think, is extraordinary.”

“Software is the ground 0 for issues around AI. That does not mean every software company is at risk. In fact, some may be enhanced. But our view was in the credit market, we are not paid to figure that out. The best you can do in credit is to get back your money and your interest on time in the amounts you've been agreed. And therefore, since there was no benefit to owning binary outcome software loans, who were bad, we sold them.”

“We are at the forefront of opening up a new funding market that is financing the picks and shovels going into data centers and doing so with IG counterparty risk and amortizing structures.”

“In our equity business, whether it is the Private Equity business or the Hybrid Equity business, 0 exposure to software.”

“Jim focused on this notion of picks and shovels. There are those who have made big bets on the future value of compute, 5 and 6 and 10 years from now. And I have no doubt that some of those bets are going to pay off really handsomely. And some of those bets are going to be disastrous. We have appropriate -- not done single-asset bets. We have spread across with the right structures and the right protections with the right risk award to kind of create convex upsides while getting some amount of downside protection and some notion of our money back.”

“We have everyone in our firm can actually envision how the addition of technology is going to make their current job easier, faster, better, stronger, less expensive. Most people can also envision how software and data going to free will allow them to evolve their current business into something that is more productive for serving their clients. Very few people can imagine that the cost of now building challenger businesses, particularly in areas where we have core strengths has gone to 0.”

“I do expect this will give us opportunity to redeploy margin, redeploy people and whether we choose to take that as additional margin or whether we invest that in growth in the business is a choice we'll make quarter-by-quarter as we think about what is best for the organization over the long term.”

“The recent week a number of us spent in Silicon Valley was informative. Here, we have the most prominent growth ecosystem anywhere in the planet and they have never been capital intensive before. We are going to see the growth ecosystem dominate debt issuance over the next 5 years.”

“the comments that Marc made and I made, it really is going to be in this -- the picks and shovels of a variety of the CapEx of the AI infrastructure. It's not just going to be on the data center per se, but also in defense as well as broader infrastructure.”

“it actually may result in industries or names that are not software or AI disruptable to trade actually a little bit of a tighter level.”

“we are seeing the most comprehensive tech cycle we have ever seen or certainly I've ever seen in my career. This will be very, very far reaching. Almost every job will be enhanced or replaced. We're going to see, in our opinion, a complete flip of blue collar ascendancy and white collar stress.”

“As the world changes and as we are all confronted with new technologies and new ways of doing business, it is, in our opinion, the strongest cultures that are going to survive and adapt.”