Apollo's Kleinman Says PE Needs to Start Capitulating on Valuations

Apollo Global Management Co-President Scott Kleinman stated that the private equity industry needs to begin accepting lower valuations on assets. Speaking at the SuperReturn conference in Berlin, Kleinman indicated that extended holding periods for investments are negatively impacting internal rates of return (IRRs). He suggested that market participants will inevitably have to "capitulate" on their valuation expectations. This sentiment reflects a broader concern within private equity regarding the difficulty of exiting investments at previously anticipated price points, potentially leading to longer fund lifecycles and reduced investor returns. The comments were made in an interview with Bloomberg's Dani Burger.