BERLIN - Despite a frenetic period of sales and spin-offs, Leon Black, the co-founder of Apollo Global Management, said Tuesday that there were still attractive opportunities for private equity firms to invest in distressed debt.
Speaking at SuperReturn International in Berlin, Mr. Black said the difference was today’s investments take more time to identify and were “not like shooting ducks in a barrel as in 2009.†The firm has raised $18.4 billion for its latest fund, which pursues both equity and debt investments.
Private equity firms don’t have to have a “global recession to have good distressed opportunities,†Mr. Black said.
The last few years have been hectic for Apollo, which has engaged in a series of big sales and initial public offerings of companies within its portfolio.
Last May, Mr. Black famously said that Apollo was “selling everything that is not nailed down†and it was a biblical time in the cycle to realize returns on investments made when others feared to invest in the aftermath of the financial crisis.
On Tuesday, Mr. Black said Apollo has sold about $24 billion in portfolio company holdings, while only investing about $2 billion in the last two years. The firm also has used the opportunity to refinance debt and deleverage the companies in which it holds stakes, he said.
The recent sellers’ market has raised concerns about the multiples that are being paid for companies, he said.
But those may be debt investment opportunities for Apollo in the future, he said.
