A correction to reflect the worsening economic outlook is creating opportunities for some investors in the private capital industry.
“A lot of this reset is incredibly healthy and provides a lot of opportunity,” Caillaux said. “The sell down has been completely indiscriminate to the quality of the business.”
For Apollo, as the market starts to reprice, deal flow is likely to improve as more companies consider going private as volatility increases, according to Kleinman.
In addition, a potential recession is prompting some companies to look to sell non-core parts of their businesses to shore up their balance sheets, Kleinman added.
--With assistance from Alice Atkins.
This article was provided by Bloomberg News.