Apollo CEO Predicts Private Credit Shakeout as Defaults Surge in Software Loans
Apollo CEO Marc Rowan warned of a prolonged shakeout in private credit as defaults rise in software loans, signaling tighter underwriting standards. Apollo shares have plunged roughly 30% so far in 2026, potentially reflecting investor concerns over credit-market instability and fund redemptions.
1. CEO Forecasts Extended Industry Shakeout
Marc Rowan, CEO of Apollo Global Management, warned that the private credit sector will undergo a significant shakeout due to escalating defaults on loans to software companies, highlighting foreseeable risks from aggressive lending in niche tech markets.
2. Share Decline Driven by Fund Redemptions
Apollo’s stock has declined about 30% year-to-date as investors rushed to redeem capital from private credit vehicles, mirroring redemption spikes at peers such as Blackstone, Ares and Blue Owl amid credit-market unease.
3. Focus on Disciplined Underwriting and Risk Management
Rowan stressed that only firms with rigorous underwriting standards and robust risk controls will endure the downturn, urging a return to conservative credit criteria after years of rapid market expansion.